The landing cost of imported Premium Motor Spirit (petrol) dropped to N797 per litre on Monday amid plans by oil marketers to cut the volume of fuel they buy to reduce losses.
The new drop comes amid a recurring price war in the downstream oil sector. Last week, the development caused the Dangote refinery to quietly implement a price reduction at its loading gantry, reducing the loading cost of its petrol from N825 per litre to N815 per litre.
Reactions to Petrol price reductions
This N10 price reduction prompted a competitive reaction from private fuel depots, forcing them to adjust their prices downward to maintain their market position.
Energy experts argue that the continuous decline in PMS prices has been causing significant losses for oil marketers and importers, who lose an average of N2.5bn daily and N75bn monthly.
Amid mounting losses, oil marketers under PETROAN have called for a regulation mandating that fuel prices be adjusted only every six months. Still, it remains uncertain whether the regulatory body will approve the demand.
