Depot marketers begin panic selling as petrol prices crash

Domestic fuel prices in Nigeria are projected to decline following a significant drop in global crude oil costs triggered by the reopening of the Strait of Hormuz.

Nigerian consumers are expecting a relief in energy costs as domestic prices for petrol and diesel are projected to decline following a sharp contraction in global crude oil markets. The downturn was triggered by Iran’s announcement that the Strait of Hormuz has been fully reopened for vessel passage, easing geopolitical supply fears. As of Saturday morning, West Texas Intermediate (WTI) fell by 11 percent to $83.85, while Brent crude dropped 9 percent to $90.38 per barrel. This shift has already begun to impact Nigeria’s downstream sector, where depot marketers have started reducing prices to stay competitive with the Dangote Refinery’s N1,200 per litre benchmark.

The price volatility has sparked “panic selling” among major depot owners, with petrol prices at facilities operated by Aiteo, Bono, and NIPCO now ranging between N1,205 and N1,206 per litre. Similarly, diesel prices at Lagos depots such as Menj and Duport have settled around N1,775 per litre. While these wholesale reductions are significant, retail pump prices have remained sticky, with petrol still retailing between N1,290 and N1,333 per litre. Industry observers suggest that the lag in retail adjustment is typical, but they anticipate a downward correction at the pumps as older, more expensive stock is depleted.

Confirming the market shift, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), noted that the sustainability of this trend depends on the continued stability of global oil benchmarks. Maigandi indicated that the association is monitoring the situation closely as marketers adjust to the new pricing reality. “We expect fuel prices to drop in the coming days if crude oil prices continue to decline,” he told DAILY POST. If the downward trajectory persists, it could provide much-needed breathing room for Nigerian households currently grappling with high transportation and living costs.

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