In a surprising reversal, the Dangote Petroleum Refinery & Petrochemicals has cut the ex-gantry price of Premium Motor Spirit (petrol) to N1,200 per litre. This comes just a day after the refinery had increased prices to N1,275 per litre, following rising international crude oil costs. The reduction reflects a significant N75 drop, influenced by a recent decline in global crude benchmarks.
A top refinery official told our correspondent that the initial price hike was a response to global market realities and geopolitical tensions in the Middle East. “The adjustment was in line with global trends. The tensions in the region have impacted crude oil prices, which in turn affect refined product pricing,” he said, speaking on condition of anonymity. Diesel, meanwhile, had seen a sharper increase, rising by N200 to N1,950 per litre.
The price cut followed news that former US President Donald Trump announced a conditional two-week ceasefire with Iran, easing fears of supply disruptions in the Middle East. Brent crude prices fell by 13.28% to $94.76 per barrel, while US West Texas Intermediate dropped 14.72% to $96.31 per barrel. This sharp decline prompted Dangote Refinery to reverse its earlier price hike, signaling a close link between Nigeria’s domestic fuel pricing and international crude trends.
Confirming the change, a company statement emphasized that there had been no new increase in petrol prices. The refinery clarified that the ex-gantry price is now N1,200 per litre, with the coastal price at N1,153 per litre. The statement reassured consumers that the company remains committed to maintaining steady fuel supply across domestic and regional markets, despite the volatility of the downstream sector.
Since commencing operations in September 2024, the Dangote Refinery has become a key player in Nigeria’s fuel market. Its responsive pricing strategies underscore the growing integration of Nigeria’s fuel sector with global oil market dynamics, particularly following the deregulation of the downstream petroleum sector.
source: punch