Dangote Refinery Slashes Petrol Price To ₦1,200 As Crude Oil Falls
Refinery Reverses Price Hike
DANGOTE Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS) by ₦75, bringing it down to ₦1,200 per litre. The adjustment comes just weeks after the refinery raised its price to about ₦1,275 per litre amid volatility in global oil markets.
Industry sources confirmed the latest price cut on Wednesday, describing it as a direct response to changing international crude oil dynamics.
Global Oil Prices Drive Adjustment
The decision follows a notable drop in global crude oil prices. Brent crude futures fell to $95.05 per barrel, representing a 13 per cent decline, while West Texas Intermediate (WTI) dropped nearly 14 per cent to $97.18.
Analysts link the slump to easing geopolitical tensions, particularly a temporary ceasefire understanding between the United States and Iran, which has reduced fears of supply disruptions in the Middle East.
Relief for Consumers and Dealers
Fuel marketers and motorists have welcomed the price reduction, expressing hope that it will ease transportation costs and the broader cost of living.
With inflationary pressures still high, stakeholders say any downward adjustment in fuel prices offers immediate relief across sectors, from logistics to household expenses.
Implications for the Domestic Market
Market analysts suggest that the refinery’s move could influence pump prices nationwide, especially if global oil prices remain on a downward trend.
Energy experts also note that the development highlights Nigeria’s increasing exposure to international oil market fluctuations, despite efforts to boost local refining capacity.
Balancing Local Supply and Global Forces
Since commencing operations in 2023, Dangote Refinery has been seen as a game-changer for Nigeria’s fuel supply chain, with expectations of reducing dependence on imports.
However, its pricing structure remains closely tied to global benchmarks like Brent and WTI, underscoring the interconnected nature of the energy market.
