None
DE
Petrol depot prices fall as competition intensifies
['Kehinde Victor', 'Kehinde Victor Is A Business Journalist', 'Communications Strategist With Experience Reporting On Aviation', 'Energy', 'Finance', 'Public Policy In Nigeria. She Covers How Regulation', 'Capital', 'Institutional Decisions Shape Markets', 'With A Focus On Accountability', 'Governance']
BizWatchNigeria.Ng
Key pointsPetrol depot prices declined across major supply hubs, with no depot recording a price increase.
Main storyPetrol depot prices declined across major supply centres on Wednesday as marketers implemented fresh price cuts, reflecting intensifying competition in Nigeria’s downstream petroleum market.
An analysis of mid-day depot prices showed that suppliers in Lagos, Warri, Calabar and Port Harcourt either reduced prices or maintained existing rates, with no depot increasing its ex-depot petrol price.
While depot prices are falling, the extent of any reduction in retail pump prices will depend on transportation costs, operating expenses and marketers’ margins.
Bottom lineLower depot prices for petrol and diesel signal stronger competition in the downstream market, although the impact on prices paid by consumers will depend on distribution and retail costs.