5 Filling Stations To Buy Petrol Below NNPC’s New Pump Price
- The NNPC filling station has adjusted petrol pump prices across the country following rise in crude oil prices
- Several filling stations have also made adjustments in response to global crude oil price changes
- There are, however, some stations that are yet to make adjustments, selling below the price of competitors and NNPC
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Filling stations have once again adjusted their petrol prices, led by the Nigerian National Petroleum Company Limited (NNPC) outlets.
Checks by Legit.ng revealed that the petrol price at N915 per litre at NNPC outlets in Lagos is the most expensive.
Source: Getty Images
Several stations are selling petrol below NNPC’s pump price, and it remains unclear why the national oil company is offering fuel at a higher rate.\
Filling stations selling below NNPC's rate
At Cincia Oil filling station, petrol is sold for N855 per litre, which is N60 cheaper than the NNPC price.
MRS, First Royal, and HYDE stations are also selling at N865, while Ardova has priced its petrol slightly higher at N900 per litre.
The lower prices offered by independent marketers are attracting more customers.
NNPC attendant Kunle told Legit.ng:
"We adjusted our rates last weekend, and I can confirm to you that sales are slow. This is because most stations around us are offering petrol at lower prices."
A transporter, Ademola, also confirmed that other fuel stations are selling at lower rates.
He said.
"For days, I haven’t driven into NNPC to buy fuel. If not for today’s urgent need, I wouldn’t have come, my bus was almost out of fuel."
Source: Getty Images
Why petrol price change
Speaking on the recent changes in fuel prices, Dumebi Oluwole, Senior Manager at Financial Derivatives Company, explained that fluctuations in pump prices are primarily driven by movements in global oil prices.
She noted that when there is a drop in global oil prices, the cost of purchasing petrol domestically would also decline.
Oluwole stated:
"This is due to changes in crude oil prices, which have affected the domestic price of premium motor spirit. Nigerians currently have a deregulated sector with cost-reflective pricing for fuel.
"Currently, fuel pricing in Nigeria is determined by crude oil prices, logistics priced in dollars, and exchange rates.
"Although Brent futures has dropped in recent days, most marketers bought when it was over $70.
"A lot of the petrol imported into Nigeria is purchased in forward contracts, with the costs incurred during higher market conditions, which are then passed on to consumers at the pumps. There is no more subsidy, so fuel prices will reflect the true costs borne by marketers."
Dangote refinery imports more crude
Earlier, Legit.ng reported that Dangote Refinery, Africa's largest oil processing plant located near Lagos, has increased its imports of U.S. crude oil this year.
The refinery’s reliance on imported crude for production reflects Nigeria’s ongoing struggle with oil production, despite various promises and the "naira for crude" policy.
In June and July alone, Dangote Refinery was set to receive approximately 14 million barrels of WTI Midland crude.
Source: Legit.ng
