Over the past weeks, based on my own gathered information, AGO / Diesel has been on the downward trend over the past weeks.

As it is, there are three (3) things to note about the AGO market at Depot Level:

1.) There is glut driven by reduced bulk consumption, oversupply and availability of cheap AGO (directly or indirectly from Russia)

2.) There is pressure on the depot owners to sell down their stock, given exposure to bank liabilities that will continue to increase the longer they hold the product

3.) The truth about Diesel being overpriced and loaded by middlemen is about to be exposed. This is predicated upon the known Petroleum Industry Convention that: PMS should be cheaper AGO in a true market, save for exceptionally levied tax. This is being exposed by the direct involvement of marketers in buying PMS, which has a higher price per MT when compared to the purest of AGO (<10ppm sulfur)

The foregoing has set the stage for competition on price. NIPCO for instance sold at 495/litre last week. Some other parties offered 450.
Some are still sticking on their guns at 550/570 – for how long? We do not know.

Please share your thoughts and perspectives on this?
How long do you think it will take the ‘Glut’ clear?
What about further price correction or stabilization?

Competition. That’s the way to go. In time to come price will crash to a considerable low. Same with Petrol.

Diesel cars will sale more over time. People will ditch PMS powered cars for diesel or CNG cars

Government is manipulating the price in other to justify the removal of fuel subsidy. Just before the removal of fuel subsidy, AGO price was over N800, few weeks to the removal of fuel subsidy, AGO started crashing. Expect fuel pump price to go up above the 540 being sold in Abuja, government will tell you the price will come down later just like AGO.... Just know fuel price will only continue to go up.

sleek214:
Government is manipulating the price in other to justify the removal of fuel subsidy. Just before the removal of fuel subsidy, AGO price was over N800,

This is false.
Price of AGO has been on the downward trend bfor the removal of subsidy on PMS. AGO was arnd 660/670 at the retail station bfor May 29th.

Russia needs all the money they can get at this point in time to keep their economic afloat, they are selling cheaper which make price of AGO to fall at the international market.

jcflex:


This is false.
Price of AGO has been on the downward trend bfor the removal of subsidy on PMS. AGO was arnd 660/670 at the retail station bfor May 29th.

Russia needs all the money they can get at this point in time to keep their economic afloat, they are selling cheaper which make price of AGO to fall at the international market.

read my message again to understand the message.

sleek214:
read my message again to understand the message.

Your assertions is False.
I still maintain what i said, before the removal of PMS subsidy, price of AGO is below #700.

Price of AGO has been on the downward trend bfor subsidy removal.

Government is not manipulate anything.
Get your fact right.
As op said, there is glut, which also make the price to fall the more, even with the introduction of 7.5% tax on AGO, the price is still arnd ₦650 per litre as at now.