The Dangote Petroleum Refinery and other petroleum marketers have reduced the prices of Premium Motor Spirit (petrol) across major depots in Lagos, Port Harcourt, Calabar and Warri, following a decline in international crude oil prices.
The reductions were recorded in the latest depot price report published by Petroleumprice.ng, with the biggest adjustments seen in Lagos, where several operators cut their petrol prices by between N20 and N24 per litre.
The reductions came as Brent crude traded below $100 per barrel, while the United States benchmark, West Texas Intermediate, also declined to $91.17 per barrel.
The latest reductions followed a mixed movement in the international crude market as Brent crude fell to $99.77 per barrel, while WTI dropped by $1.20, or 1.30 per cent, to $91.17 per barrel. Recall that Brent hit $109 last week.
However, Murban crude moved in the opposite direction, gaining $4.18, or 3.80 per cent, to $114.20 per barrel.
The movement in crude prices is significant for Nigeria’s downstream petroleum market because international oil prices influence the cost of imported refined products and the pricing of locally refined petroleum products.
The latest depot price movements come amid continued volatility in the international oil market, with crude benchmarks responding differently to developments affecting global supply and demand.
Natural gas prices also moved higher, gaining 2.96 per cent to $2.92, according to the market data.
The latest PMS adjustments suggest that the recent decline in crude prices is beginning to filter into the domestic wholesale market, although the extent of further reductions will depend on movements in crude prices, foreign exchange and the cost of refined petroleum products.
The lower depot prices could also influence retail petrol prices as marketers replenish their stocks at the reduced rates, although pump prices vary according to location, transportation costs and individual marketers’ margins. Petrol now trades between N1,370 and N1,450, depending on the location.