By Sandra Ugwu | AnchorNews

Abuja - Competition in Nigeria's downstream petroleum sector deepened on Tuesday as major fuel marketers reduced ex-depot petrol prices by as much as N23 per litre, a development expected to ease supply costs for bulk buyers.

A review of depot prices across Lagos, Warri, Calabar and Port Harcourt showed widespread price reductions, while no major depot increased its ex-depot rate during the trading period.

In Lagos, the Dangote Petroleum Refinery maintained its ex-depot price at N1,216 per litre, retaining its position among the lowest-priced suppliers. Pinnacle aligned with Dangote after reducing its price by N2 to N1,216 per litre, while MRS lowered its rate by N2 to N1,222 per litre. Emadeb also cut its price by N7, bringing it to N1,218 per litre.

Other marketers, including Aiteo, Nipco, Ascon, Shema and T-Time, left their prices unchanged, selling between N1,218 and N1,220 per litre.

The latest pricing trend reflects mounting competition among petroleum suppliers, fuelled by increased domestic production and continued participation of independent marketers in the market.

Warri witnessed some of the sharpest reductions, with Rain Oil cutting its depot price by N23 to N1,245 per litre, one of the biggest adjustments recorded nationwide. Matrix reduced its price by N10 to the same level, while TSL lowered its rate by N6 to N1,244 per litre. Bulk Strategic, Liquid Bulk, Masters and Sigmund also quoted prices around N1,245 per litre.

In Calabar, Northwest reduced its depot price by N15 to N1,235 per litre, while Mainland cut its rate by N10 to N1,240 per litre. Hong Petroleum posted the lowest price in the area after trimming N2 to N1,233 per litre.

Port Harcourt also recorded downward adjustments as Matrix reduced its price by N3 to N1,243 per litre, Optima matched the price after a N2 reduction, while Rain Oil lowered its rate by N23 to N1,245 per litre.

Industry observers say the coordinated price reductions point to improved product availability and aggressive competition among marketers seeking to strengthen their market share.

They also noted that the narrowing difference between Lagos depot prices and those in other parts of the country suggests a gradual convergence of fuel pricing across major distribution centres.

Despite the reductions at the depot level, analysts caution that consumers may not see an immediate drop in pump prices, as transportation costs, distribution expenses and retail margins remain key determinants of the final selling price.

The diesel market also recorded price adjustments. In Lagos, Matrix reduced the ex-depot price of Automotive Gas Oil (AGO) by N55 to N1,645 per litre, while Aiteo cut its price by N15 to N1,630 per litre.

Similarly, in Warri, Matrix reduced diesel prices by N70 to N1,650 per litre, while A.Y.M Shafa lowered its rate by N40 to the same price.

The latest price movements reinforce growing competition in Nigeria's downstream petroleum industry, with marketers increasingly adjusting prices to attract customers amid improving fuel supply conditions.