Nigeria’s downstream oil sector is witnessing a fresh wave of price corrections, as depot prices for Premium Motor Spirit (PMS), popularly known as petrol, have dropped significantly over the past week. Yet, many filling stations are still selling at inflated pump prices, sparking concerns among motorists and stakeholders about delayed price transmission to consumers.
Depot Prices Are Crashing, But Pump Prices Are Lagging
Across major private depots in Lagos and other coastal cities, the ex-depot price of petrol has crashed to between ₦835 and ₦840 per litre, depending on location and supplier. Compared to the previous range of ₦865 to ₦880 per litre seen earlier this month, the sharp decline signals a major shift that should immediately reflect at the retail level.
However, filling stations appear slow to adjust. For example, at Eunice Ato Filling Station located at Igando, College Bus Stop, Lagos, petrol was being sold for ₦863 per litre as of April 26, 2025. Meanwhile, just down the road, MOJ Filling Station maintained a higher price of ₦890 per litre despite the obvious fall in depot acquisition costs.
With ex-depot prices crashing, the expectation is clear: retailers must slash pump prices to reflect market realities and pass the savings to consumers grappling with economic hardship.
Why Filling Stations Must Act Swiftly
- Depot Costs Are Lower:
Depot owners have adjusted prices downward in response to increasing competition and improved product availability. Retailers no longer have the excuse of high landing costs or limited supply. - Consumer Trust Is At Stake:
Failure to mirror falling wholesale prices will damage public confidence in filling stations. Price gouging during a depot price crash will only reinforce negative perceptions of the downstream sector. - Competitive Pressure Is Rising:
More filling stations are adjusting their rates downward, meaning those that delay risk losing customers to rivals offering better value. Stations like Eunice Ato that have slightly adjusted prices will likely draw more motorists than stations still clinging to ₦890 levels. - Government May Intervene:
Although the sector is deregulated, regulators could increase scrutiny if filling stations are seen to be exploiting consumers during a time of falling costs. Proactive adjustments can help operators avoid regulatory backlash. - Market Volatility Is Real:
Global oil markets remain volatile. With Brent Crude hovering around $66.20 per barrel and fears of a supply glut growing, local depot prices could fall even further. Stations that stay rigid risk being caught off-guard by rapid market changes.
The Bottom Line
The depot price crash is a clear signal that filling stations must urgently reduce their pump prices. A move toward more competitive retail pricing is not just good business; it is a necessary step toward restoring public trust, maintaining market share, and supporting the broader economic recovery effort.
Motorists are watching. Regulators are watching. It’s time for petrol marketers to act accordingly.
