The loading cost of Premium Motor Spirit at private depots dropped to N925 per litre on Monday, reflecting a N27 decrease from the N952 offered by the highest-selling depot last Friday.
Marketers attributed the reduction to Dangote Petroleum Refinery’s decision to lower its ex-depot price of PMS from N950 to N890 per litre, effective Saturday.
This shift came at a significant loss to many petroleum marketers who had previously purchased products at higher prices.
It was reported that some marketers who bought the product shortly before the announcement would have to sell at a loss, incurring debts totaling millions of naira.
Meanwhile, it was gathered that petrol price trends at loading depots showed a notable price drop across all depots, though this has not yet been reflected in the retail price of petrol.
Nipco Depot reduced its selling price to N935 from N952 per litre last Friday. Chipet reduced its loading price to N935 per litre from N945 last Friday. Also, Aiteo slashed its costs to N925 from N942.
Wosbab Depot lowered its price to N930 from N947, while Rain Oil Depot also reduced its price to N935 from N947 per litre, compared to last Friday.
In Warri, Matrix cut its price to N960 from N970 per litre, while AYM Shafa sold at N960, down from N970.
Zone 4 depot in Calabar reduced its price by N8 to N950 from N958 per litre. Alkanes sold at N949 and Northwest sold at N950.
In response, oil and gas expert, Olatide Jeremiah, said the price drop was expected.
He said, “Dangote refinery’s reduction of petrol to 890 has influenced private depots and importers to immediately review their fuel price downwards. His capacity in Refining and gantry loading has earned him the market leader in the downstream sector. The era of hoarding and price manipulation is gone. The market share war has forced all players to sit up, thus, it should start reflecting through reduction of fuel at the pump.”