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- Petrol prices at private depots have witnessed changes as marketers get option to enjoy direct delivery from Dangote refinery
- Dangote also slashed petrol prices which has left Depot and Petroleum Products Marketers Association of Nigeria unhappy
- Filling stations in Lagos are already adjusting to new prices of petrol has announced by Dangote refinery
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Some Private depots owners have lowered the cost of Premium Motor Spirit(PMS) also known as petrol to remain competitive in response to Dangote Refinery’s aggressive pricing strategy.
The refinery on Monday, September 15 announced that its ex-depot price for marketers has been slashed to N820 per liter as it begins direct supply of product to customers for free.
Photo: Bloomberg/contributor
Source: Getty Images
Not only are the depot owners struggling to attract customers, the are faced with keeping up with Dangote new petrol prices.
New petrol prices emerge at depots
In response, Petroleumprice.ng reports that Mao, Aiteo, First Royal, and Menj all lowered their petrol prices by N2, now selling at N832 to N834 per litre.
Other depots, including A.Y.M Shafa, Soroman, Tsl, and Ardova, also reduced prices by N2. Some depots, however, recorded slight increases.
Sigmund also marginally reduced its price by N1 to N864, while Liquid Bulk and Rainoil Lagos cut prices by N4.
Wosbab raised its price by N9 to N845, while Masters added N2 to N866, showing that not all operators are following the downward trend.
Photo: Pius Utomi Ekpei
Source: Getty Images
Dangote begins direct petrol sales
Dangote refinery on Monday, September 15 kicked off the direct distribution of its product to customers for free.
Depot owners are not happy with the decision and claimed that Dangote refinery is trying dominate the market.
The owners under the ageies of Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) warned that dominance narratives could distort investor perception and destabilize confidence in the sector.
In a statement signed by its executive secretary, Olufemi Adewole, DAPPMAN argued that such tactics like pricing undermine healthy competition
Expert speaks
Reacting to the development Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng told Legit.ng that Dangote move is a game changer.
He said:
“For me, the Dangote’s distribution plan is posed to face an uphill battle, as stakeholders like depot owners and truck owners have entrenched interests and will fiercely defend their market share.
“Lately, the swift price cuts by depot owners to compete with Dangote’s consistent price drop is a testament.”
Jeremiah also added that the sector is currently destabilised as the new market leader (Dangote) is calling the shots.
Dangote reacts depot owners claims its petrol N65 cheaper in Togo
Earlier, Legit.ng reported that Dangote Refinery has dismissed claims by depot owners and other oil marketers that it sells cheaper petrol abroad.
Dangote in response to DAPPMAN noted that the average pump price in Lomé is about 680 CFA francs ($1.13) per litre, or roughly 1,826 naira, significantly higher than Nigerian prices.
He also reiterated its commitment to go ahead with its free fuel distribution logistics initiative nationwide.
Source: Legit.ng
