Fuel consumers across Nigeria are raising concerns over why retail petrol prices remain stubbornly high despite a noticeable drop in wholesale depot rates. While distribution hubs have trimmed their prices, filling stations in major cities continue to sell Premium Motor Spirit (PMS) at elevated rates, sparking debates over potential profiteering in the downstream supply chain.
The Growing Gap Between Depot and Pump Rates
Recent market intelligence reveals that wholesale PMS prices at major Lagos depots have dropped to between N1,266 and N1,280 per litre. Notably, both the Dangote Refinery and Pinnacle priced their product at N1,266 per litre, while MRS offered N1,267. Other key players, including Aiteo, Integrated, and Sahara, hovered around N1,270 per litre. Despite these lower wholesale margins some sitting N44 below previous benchmarks retail pumps in Lagos and Abuja are still selling petrol for as high as N1,325 per litre.
Regional Price Reductions Across Nigeria
This downward pricing trend was mirrored in other major coastal hubs:
- Calabar: Wholesale prices ranged from N1,280 at Mainland to N1,300 at Fynefield, with Matrix positioned at N1,290 per litre.
- Warri: Nepal and Optima quoted N1,275 per litre, while Parker and Prudent stood at N1,280.
Additionally, active market competition triggered several intra-day price drops. Rain Oil led the charge with a N20 reduction to N1,280 per litre, while other facilities like Bulk Strategic, Liquid Bulk, and Masters trimmed their rates by N10 per litre.
Why Are Pump Prices Failing to Drop?
Downstream operators maintain that the disparity between depot costs and what consumers pay is not simply a matter of inflated retail margins. Industry representatives point out that several hidden charges accumulate after fuel leaves the depot:
- Post-Depot Logistics: The high cost of transporting fuel by road from coastal depots to inland stations.
- Operational Overheads: Rising maintenance costs, electricity, and local administrative fees at retail outlets.
- Diverse Commercial Agreements: Not all retailers have direct access to the cheapest depots, meaning some purchase inventory at higher secondary rates.
While wholesale competition continues to depress depot rates, motorists across Nigeria are left waiting to see if these market-driven savings will eventually trickle down to the retail pumps.