Relief as Dangote Refinery Reduces Petrol Price

Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit, popularly known as petrol, by N75 per litre, citing a decline in global energy prices following easing tensions in the Middle East.

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The refinery disclosed the adjustment in a notice issued to marketers on Monday, stating that the new gantry price would now be N1,175 per litre, down from N1,250 per litre.

It also announced a reduction in its coastal supply price, which dropped from N1.595 million per metric tonne to N1.495 million per metric tonne.

According to the company, the revised rates take effect from midnight on June 16, with all outstanding but undelivered gantry volumes to be recalculated using the new pricing structure.

The refinery attributed the decision to recent developments in the international oil market, particularly the easing of geopolitical tensions in the Middle East that had contributed to elevated crude oil prices over the past few months.

Industry observers noted that the latest adjustment positions Dangote Refinery among the most competitive suppliers in the domestic market and could trigger a fresh round of reductions in pump prices across the country.

The price cut comes as crude oil prices continue to retreat following reports of a ceasefire agreement between the United States and Iran, alongside moves to restore activities along the strategic Strait of Hormuz shipping route.

Global crude prices had surged sharply during the months-long conflict between both countries, climbing above $120 per barrel at the height of the crisis and pushing fuel costs higher across several markets, including Nigeria.

The increase had seen petrol prices in Nigeria rise significantly, while diesel and aviation fuel also recorded notable hikes.

With international oil prices now trending downward, stakeholders expect additional reductions in domestic fuel prices in the coming weeks.

Market analysts have suggested that if stability is sustained in the Middle East and crude prices continue to decline, retail petrol prices could fall further, offering relief to consumers and businesses burdened by high energy costs.

However, industry sources cautioned that the pace of future reductions may depend on the cost of crude oil already purchased and stored by refiners before the latest downturn in global prices.