The Dangote Petroleum Refinery has reduced its ex-gantry price of Premium Motor Spirit (petrol) by ₦100 per litre, bringing it down to ₦1,075 per litre from ₦1,175.
The refinery also announced that petrol supplied through coastal distribution will now sell at ₦1,050 per litre.
The price reduction followed a drop in global crude oil prices to about $88 per barrel from $110 per barrel amid easing concerns over prolonged disruptions to global oil supply.
The decline in crude prices came after remarks by former United States President Donald Trump suggesting that the ongoing conflict involving the United States, Iran and Israel could end soon.
However, Iranian authorities rejected the possibility of talks with the United States, insisting that missile attacks would continue as the conflict persists.
Iran’s Foreign Minister, Abbas Araghchi, said negotiations with the United States were not currently under consideration, citing previous experiences during earlier diplomatic engagements.
The refinery also reviewed the price of diesel downward to ₦1,430 per litre from ₦1,620 per litre, representing a reduction of ₦190 per litre.
The company noted that the ex-gantry prices announced do not include statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The latest price cut comes after several upward adjustments earlier in the week, which had pushed petrol prices higher following the surge in global crude oil prices triggered by tensions in the Middle East.
Despite the reduction announced by the refinery, many petrol retail outlets have yet to adjust their pump prices.
At several filling stations, fuel is still being sold at previously increased rates, with some marketers maintaining pump prices above ₦1,200 per litre.
Industry analysts say downward adjustments at depots and filling stations may occur after existing stocks purchased at higher prices are exhausted.
Experts also warn that the domestic market may continue to experience fluctuations in fuel prices, depending on developments in the global oil market and the duration of the ongoing geopolitical tensions.
Meanwhile, stakeholders in the petroleum sector have stressed the need for increased domestic refining capacity to reduce Nigeria’s exposure to volatility in international oil markets and strengthen the country’s energy security.
Nigerians are facing increased economic pressure following a fresh hike in the price of Premium Motor Spirit (PMS), commonly known as petrol. Oil marketers have raised the pump price of petrol to about N1,300 per litre, up from approximately N1,050 per litre, representing an increase of roughly 24 per cent. The development comes amid a steady rise in crude oil prices in the international market, which recently climbed to about […]
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