The slump in the price of crude oil in the international market has forced oil marketers to reduce the price of Premium Motor Spirit (PMS) or petrol at the depots in Lagos, according to reports.

The price of Brent had hit a peak of $115 in June 2014, after an all-time high of $147 in July 2008. However, after the June 2014 peak, the price slumped to $45.19 per barrel in January 2015, and further down to $42 last week, the lowest level this year.

It was gathered that with the crude oil prices at an all-time low, the prices of refined products have also dropped significantly, though most of the marketers were still selling slightly above the government’s approved N77.66 ex-depot price.

PMS, which was sold for between N101 and N94 per litre at the depots by the oil marketers a few weeks ago, was selling at ex-depot price of N80 and N79 per litre by the marketers at the weekend.

It was learnt that Integrated Oil and Gas Limited, for instance, was even selling at government’s approved ex-depot N77.66k on Thursday, while some marketers were selling as high as N80.

However, Integrated Oil did not sell PMS on Friday, apparently due to lack of stock, but was dispensing Automotive Gas Oil (AGO) at ex-depot price of N90 while other marketers were selling AGO between N90 and N94.

The survey showed that on Thursday, Ascon was selling PMS at ex-depot price of N79 and N77.66 on Friday; Capital Oil was selling at N79 on Thursday and N78 on Friday; D-Jones was selling at N79 to its dealers and N78.50 to bulk buyers on Thursday and N78 on Friday.

Others include, Folawiyo, which was selling at N79 to its dealers and N77.66 to bulk buyers on Thursday and N77.66 to bulk buyers and N80 to dealers on Friday; EMMADEP was selling at N79 on both Thursday and Friday; Sahara Energy (N79 on Thursday and N78.50 on Friday) and Heyden Petroleum, which was selling at N80 on Thursday but had no stock on Friday.

Bovas was selling for N79 on both Thursday and Friday, while AA Rano was selling for N78.50 on Thursday and Friday.
NIPCO Plc was also selling at N77.66 on both Thursday and Friday.

With the slump in the price of PMS at the depots, the price is expected to drop significantly at the filling stations.
Traditionally, all the major marketers sell at ex-depot price of N87 to all their dealers, who are mandated by the companies to sell at the same N87 at the filling stations.

By Pita Ochai


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