Why Petrol Prices Remain High Despite Lower Depot Costs
By NINI NDUONOFIT-AKOH
PETROL depot prices have continued to fall in some parts of Nigeria, but many motorists are still paying more than ₦1,300 per litre at filling stations.
The disparity has intensified scrutiny of the downstream supply chain and the factors responsible for the difference between wholesale and retail prices.
In Lagos, the latest mid-day depot report for Tuesday 8 September, put petrol prices between ₦1,266 and ₦1,280 per litre.
Dangote Refinery and Pinnacle offered the lowest reported rate at ₦1,266 per litre. MRS followed at ₦1,267, while Aiteo, Integrated and Sahara sold at ₦1,270.
Ascon and NIPCO quoted ₦1,280 per litre.
Meanwhile, some filling stations in Lagos sold petrol at ₦1,310 per litre or more. Prices reportedly reached ₦1,325 at some outlets in Lagos and Abuja.
Price Cuts at the Depots
Several depot operators reduced their prices during the day.
In Lagos, Integrated and Sahara lowered their rates by ₦9 per litre. Their new price stood at ₦1,270. Lister also cut its price by ₦3 to ₦1,277.
Warri recorded similar reductions. Bulk Strategic, Liquid Bulk and Masters each reduced their rates by ₦10 per litre.
Matrix cut its price by ₦5, while Rain Oil recorded a ₦20 reduction to ₦1,280.
The pattern suggests stronger competition among some wholesale suppliers. Yet, retail prices have not moved down at the same pace.
Regional Price Differences
Depot prices also differed across major markets.
In Calabar, Mainland sold petrol at ₦1,280 per litre. Matrix quoted ₦1,290, while Fynefield stood at ₦1,300.
Warri recorded prices ranging from ₦1,275 to ₦1,290. Nepal and Optima sold at ₦1,275, while Parker and Prudent quoted ₦1,280.
A.Y.M. Shafa sold at ₦1,287, with Matrix at ₦1,290.
These differences reflect the varying supply and distribution conditions across locations.
Why Pump Prices Remain Higher
Industry operators cautioned against treating the depot price as the final cost of petrol.
According to them, transportation, storage, handling and other distribution expenses can add significantly to the retail price.
The cost of moving products from depots to distant filling stations can be particularly important. In addition, stations may face different operating expenses and purchase petrol under different commercial arrangements.
Therefore, two filling stations in different locations may not sell at the same price, even when they source from similar wholesale markets.
Pressure for Lower Retail Prices
Still, the persistent difference between depot and pump prices is likely to keep consumers and regulators focused on the downstream market.
If wholesale prices continue to decline, motorists will expect filling stations to reflect at least part of the reduction.
The extent to which those savings reach consumers will depend on the costs incurred throughout the distribution chain.
For now, however, depot prices around ₦1,266 to ₦1,280 per litre in Lagos contrast sharply with retail prices above ₦1,300 at many outlets.
That gap remains one of the key issues shaping the current petrol market and the debate over how much Nigerians ultimately pay for fuel.
