Petrol Pump Prices Hold Above N1,300 Despite Cheaper Depot Rates — full story

Despite a notable reduction in wholesale depot prices, fuel stations nationwide continue to sell Premium Motor Spirit (PMS) at elevated rates, sparking renewed concerns about potential price gouging within the supply chain, specifically between loading points and retail outlets.

By Tuesday midday, reports from key Lagos depots indicated that Premium Motor Spirit was being sold at wholesale prices ranging from N1,266 to N1,280 per litre. Specifically, Dangote Refinery and Pinnacle offered PMS at N1,266 per litre, MRS quoted N1,267, while Aiteo, Integrated, and Sahara listed their prices at N1,270 per litre. Ascon and NIPCO had their rates set at N1,280 per litre.

This means that even with the lowest recorded depot price in Lagos being N1,266 per litre—a significant N44 less than N1,310—numerous retail outlets in Lagos and Abuja are still maintaining pump prices as high as N1,325 per litre for consumers.

A similar trend of decreasing depot prices was observed in other parts of the country. In Calabar, for instance, prices varied from N1,280 at Mainland to N1,300 at Fynefield, with Matrix offering PMS at N1,290. In Warri, Nepal and Optima quoted N1,275 per litre, Parker and Prudent set their rates at N1,280, A.Y.M. Shafa at N1,287, and Matrix at N1,290.

Several facilities also implemented intra-day price reductions. In Lagos, Integrated and Sahara lowered their prices by N9 per litre, reaching N1,270, while Lister adjusted its rate down by N3 to N1,277. Over in Warri, Bulk Strategic, Liquid Bulk, and Masters decreased their prices by N10 per litre. Matrix saw a N5 reduction, and Rain Oil made the most significant cut, dropping its price by N20 to N1,280 per litre.

Operators in the downstream sector explain the persistent gap between the cost of fuel at wholesale depots and the price consumers pay at the pump by citing post-depot logistical expenses and operational overheads. An industry insider commented, “The depot price is only one component of the final price paid by the consumer,” further elaborating that costs associated with transportation, storage, handling, and the running of fuel stations all contribute to widening this margin.

A separate operator highlighted the diverse commercial agreements and geographical limitations faced by different retailers. “Not every station buys at the same price or has the same operating cost. Location, transportation, and other expenses all affect the pump price,” the operator explained. Despite ongoing robust competition among depots helping to suppress wholesale rates, consumers are eagerly anticipating if these reduced costs will ultimately lead to lower prices at the retail pumps.