Filling Stations Cut Petrol Prices as Competition Grows in Lagos, Ogun

Filling stations across parts of Lagos and Ogun states have started reducing petrol prices as competition intensifies in Nigeria’s downstream market.

As of Sunday, several stations along the Lagos-Ibadan Expressway were selling Premium Motor Spirit at an average of N1,205 per litre, down from about N1,280 per litre. The price cut followed the recent reduction in petrol gantry prices by the Dangote Petroleum Refinery.

The lower prices are already changing buyer behaviour. Stations selling cheaper petrol attracted more customers, while outlets with higher prices recorded less activity.

Petrol Prices Along Lagos-Ibadan Expressway

At Mowe, SGR filling station offered one of the lowest prices, selling petrol at N1,199 per litre as of Saturday. NIPCO, SAO, AP and MRS sold the product at N1,205 per litre, while Mobil stations sold at N1,220 per litre.

Heyden sold petrol at different rates depending on location, displaying N1,285 per litre in Iperu and N1,210 per litre in Ibafo. Retail outlets owned by the Nigerian National Petroleum Company Limited sold petrol at N1,245 per litre.

Dangote Refinery Cuts Gantry Price

The price changes come after crude oil prices dropped from the highs recorded during the United States-Iran tension. As pressure in the international market eased, crude prices fell to about $80 per barrel, creating room for local price adjustments.

Dangote Refinery responded by cutting its petrol gantry price by N75 per litre, from N1,250 to N1,175 per litre. Some private depot operators also reduced their prices to around N1,180 per litre.

Why Petrol Prices Are Not Yet Uniform

The latest development has raised hopes that petrol prices may fall further if market conditions remain stable. However, marketers say the reduction may not be immediate across all retail outlets because many operators still have old stock bought at higher prices.

This explains why petrol prices are not yet uniform across filling stations. While some stations have adjusted quickly, others are still selling at higher rates to avoid losses.

Diesel Price Also Drops

Diesel prices are also coming down. Recent market data showed that Dangote Refinery reduced its diesel gantry price by N100, bringing it down from N1,600 to N1,500 per litre. This marks another downward review within one week.

Still, many Nigerians believe the current reductions are not enough, especially given the sharp fall in crude oil prices.

Further Price Cuts May Come Gradually

A source within Dangote Group said the refinery was still watching the market closely, adding that it had crude purchased during the period of higher prices in its tanks. According to the source, prices may fall further if the market continues to ease, but the adjustment will depend on stock costs and crude price movements.

The source said petrol could still drop to around N900 per litre, but stressed that such a fall would not happen overnight because expensive crude already bought must first be processed and sold.

For now, motorists are likely to see more price differences across filling stations as operators compete for customers and adjust to the changing market.