Ibadan Petrol Stations Hold Prices Despite Dangote Cut

Petrol stations in Ibadan, Oyo State, have maintained their retail prices despite a recent N100-per-litre reduction in the ex-depot, or “gantry,” price by the Dangote Refinery. The sustained prices were confirmed through on-ground reports from multiple locations across the city more than 24 hours after the refinery’s announcement.

On Tuesday, the Dangote Refinery stated it had reduced its petroleum motor spirit (PMS) gantry price to N1,075 per litre from N1,175. The reduction followed a prior adjustment where many independent stations in Ibadan had increased prices to between N1,230 and N1,300 per litre. Industry practice typically sees retail prices adjust downward when refinery costs drop, though the timing can vary.

According to reports, none of the stations visited in key areas including the University of Ibadan, Bodija, Sango, Eleyele Road, Apete, Ijokodo, and Awotan had reflected the reduction as of Wednesday afternoon. Stations that had raised prices earlier in the week continued selling at those elevated rates.

This situation highlights the often complex and lagging transmission of cost changes from refinery to pump in Nigeria’s downstream petroleum sector. While the Dangote Refinery’s move was anticipated to ease fuel costs for consumers, the immediate impact in Ibadan appears limited. The disconnect suggests factors such as inventory costs, station pricing strategies, or supply chain dynamics may be delaying the pass-through of savings.

The persistence of higher retail prices underscores the challenges in achieving swift price adjustments across the retail network, even with a significant reduction from a major domestic supplier. Observers will be watching whether other Nigerian cities follow a similar pattern or if Ibadan’s retailers eventually align with the new refinery benchmark.