Relief for Nigerians as Dangote slashes petrol price

Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by N75 per litre, offering fresh hope of lower pump prices for consumers across Nigeria.

The price adjustment, announced in a circular to fuel marketers on Monday, follows the easing of geopolitical tensions in the Middle East, which had driven up global crude oil prices and fuel costs over the past three months.

Under the new pricing structure, the refinery’s gantry price has been reduced from N1,250 per litre to N1,175 per litre. The coastal price per metric tonne has also been cut from N1,595,790 to N1,495,215.

Dangote Refinery said the revised rates took effect from midnight on June 16, adding that all outstanding unloaded gantry volumes would be repriced accordingly.

The company attributed the reduction to improving conditions in the international energy market following signs of a diplomatic breakthrough between the United States and Iran. The development has eased concerns over global oil supply disruptions and contributed to a decline in crude oil prices.

The Middle East conflict had significantly impacted global energy markets after hostilities between the United States and Iran erupted in late February. During the three-month crisis, crude oil prices surged above $120 per barrel, triggering sharp increases in fuel prices worldwide.

In Nigeria, petrol prices climbed from about N830 per litre to nearly N1,300 per litre, while diesel and aviation fuel prices also rose substantially.

However, recent reports of a ceasefire agreement and plans to reopen the Strait of Hormuz, a key route for global oil shipments, have improved market sentiment and pushed crude prices lower.

Brent crude, the global benchmark, traded around $83 per barrel on Monday, extending a downward trend that began after the announcement of the U.S.-Iran peace accord.

Industry analysts believe the refinery’s latest price cut could pave the way for further reductions at filling stations if global oil prices continue to decline.

According to petroleum market observers, Dangote Refinery’s revised rate now places it among the most competitive suppliers in the domestic market. Many marketers had been purchasing petrol at around N1,240 per litre before the latest adjustment.

There is growing speculation that petrol prices could fall below N1,000 per litre in the coming months if stability returns to the global oil market. Some industry insiders have even suggested that pump prices could eventually approach N900 per litre.

However, refinery officials caution that the pace of future reductions will depend on the cost of crude oil already in storage, much of which was acquired when prices were significantly higher.