Nigerian petroleum depot operators have reduced their ex-depot petrol prices, setting new rates below the gantry price offered by the Dangote Refinery. This market adjustment follows a decline in global crude oil benchmarks.
According to checks by Media Talk Africa, major depot companies including AA Rano, Sahara, Soroman, Bovas, and Alkanes have lowered their ex-depot price to N1,270 per liter. This represents a decrease from previous ranges of N1,285 to N1,290 per liter. The new depot price is N5 less than the Dangote Refinery’s current gantry price of N1,275 per liter.
This price shift occurs amid falling international crude oil prices. Brent and West Texas Intermediate (WTI) crude dropped below $100 per barrel on Tuesday, a movement analysts linked to the U.S. President’s proposed peace deal with Iran, which could potentially increase global oil supply. The decline in the cost of the primary feedstock is putting competitive pressure on the Dangote Refinery, Africa’s largest, to reduce its own ex-refinery price.
Ex-depot or gantry prices are the wholesale rates at which fuel is sold to retail marketers. Consequently, movements at this level directly influence the pump prices consumers pay. As of the report filing, retail petrol prices in Abuja ranged from N1,361 to N1,380 per liter. A sustained reduction in ex-depot costs is typically required before lower prices are passed on to motorists at filling stations.
The Dangote Refinery, which began operations in late 2023, has been a pivotal factor in Nigeria’s fuel market, aiming to end dependence on imported refined products. Its pricing has frequently served as a benchmark for the industry. The current price undercutting by independent depot owners signals a dynamic and responsive wholesale market, where competitors are quick to align with falling international costs.
The development highlights the direct correlation between global oil price trends and domestic fuel costs in Nigeria, Africa’s largest oil producer. While lower crude prices offer relief, the extent and speed of retail price reductions remain contingent on further adjustments along the supply chain. Market watchers will observe whether Dangote Refinery matches the new lower depot price, a move that could accelerate the decline in retail petrol rates across the country.
