Six Depots Cut Petrol Prices Amid Rising Competition
Six depot owners across the country have reduced the prices of petrol as competition increases in the downstream sector of the petroleum industry.
The depot owners, which slashed their prices yesterday included Emadeb, First Royal, MENJ, Aiteo, Pinnacle and Hyde.
Emadeb reduced its depot price to N827 per litre from N903 per litre while First Royal slashed same to N826 per litre from N828 per litre.
Also, MENJ, Aiteo, Pinnacle and Hyde reduced prices to N826 per litre from N827; N825 per litre from N826; N850 from N856 per litre and N868 from 869 per litre, respectively.
According to Petroleumprice.ng, the depot prices of petrol would continue to drop in the coming weeks as the prices of crude oil, a major feedstock, remain relatively low at $65 per barrel in the global market.
Meanwhile, an industry expert, who pleaded anonymity, said operators look forward to another downward review of gantry price of the Dangote Petroleum Refinery.
He said: “With the downward review of depot prices, currently standing at par with the Dangote Refinery N825 per litre gantry price, there are indications that the refinery would soon reduce its price further.”
On his part, National President of Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Dr. Billy Gillis-Harry, said: “The depot owners imported commercial quantities of petrol from the global market. Without the downward price adjustment, it would be difficult for them to sell in the domestic market. It is their response to the competition in the domestic market.
“We expect further reduction as competition continues. But too much competition could become harmful to the sector. We need healthy competition to impact on consumers and the sector.”
Recently, Dangote Petroleum Refinery & Petrochemicals said that despite the fluctuations in global crude oil prices, it has consistently reduced the price of petrol.
The company, in a release signed its Group Chief Branding and Communications Officer, Anthony Chiejina, said the decision to maintain price stability reflects its unwavering commitment to supporting the Nigerian economy and alleviating the burden on consumers from the increase in fuel prices by maintaining price stability.
SOURCE: Vanguard
