Petrol Prices Drop to N1,205/Litre in Lagos, Ogun as Market Competition Intensifies

Motorists across parts of Lagos and Ogun states are experiencing significant relief at the pump, with filling stations lowering petrol prices to an average of N1,205 per litre as of Sunday. This competitive price adjustment follows a recent reduction in gantry prices by the Dangote Petroleum Refinery.

Surveys conducted along the Lagos-Ibadan Expressway indicate that several retail outlets have slashed their pump prices from an average of N1,280 per litre in a bid to retain market share. Stations offering lower rates have notably attracted higher patronage, reflecting growing consumer sensitivity to pricing.

The SGR filling station in Mowe currently offers the lowest rate at N1,199 per litre. Meanwhile, outlets operated by NIPCO, SAO, AP, and MRS have set their prices at N1,205 per litre. Mobil filling stations are dispensing the product at N1,220 per litre, while Heyden’s pricing reflects regional variations, N1,285 per litre in Iperu and N1,210 per litre in Ibafo. The Nigerian National Petroleum Company Limited (NNPC) retail outlets are selling Premium Motor Spirit at N1,245 per litre.

The downward pricing trend follows the de-escalation of geopolitical tensions in the Middle East, which saw global crude oil prices retreat from a peak of $120 per barrel during the US-Iran conflict to approximately $80 per barrel following the peace agreement. In response, the Dangote refinery reduced its petrol gantry price by N75 to N1,175 per litre, a move that subsequently prompted private depot operators to lower their rates to around N1,180 per litre earlier this week.

Additionally, the Dangote refinery has implemented a further reduction in diesel prices, lowering the gantry price by N100 to N1,500 per litre. This 6.25 percent decrease marks the second diesel price review within a week, following an earlier adjustment on June 16.

Despite these reductions, several Nigerians have argued that the cuts remain insufficient relative to the sharp decline in crude oil costs. In response, a source within the Dangote Group explained that the refinery is currently processing crude purchased at elevated prices during the height of the market crisis. The source cautioned that while prices could potentially drop further, possibly to N900 per litre, any such decline remains contingent on exhausting the existing stock of expensive crude.

“Crude prices are still swinging. People making such comments are either insincere or do not understand the intricacies of the oil business,” the source stated, advising critics to benchmark local prices against those across Africa and the broader global market.