Petrol Price May Fall to N1,200 as Dangote Refinery Slashes Rates Amid Global Oil Decline
Nigeria may soon witness a fresh reduction in petrol prices, with marketers projecting that pump prices could fall to as low as N1,200 per litre following a major price cut by the Dangote Petroleum Refinery. The development comes as global crude oil prices continue to decline after the United States and Iran reached a peace agreement, easing concerns over disruptions to oil supply routes and bringing relief to energy markets worldwide.
In a move expected to impact fuel costs across the country, Dangote Refinery reduced its petrol gantry price by N75 per litre, lowering the ex-depot rate from N1,250 to N1,175. The refinery said the decision was driven by the easing of tensions in the Middle East, which had contributed to elevated energy prices over the last three months. The reduction has already prompted several depot operators to adjust their prices to around N1,180 per litre, signalling a potential downward trend in the domestic fuel market.
Despite the reduction at the depot level, many filling stations have yet to lower their pump prices, with petrol still selling for about N1,280 per litre in several locations. Industry players explained that marketers are currently focused on clearing existing stock purchased at higher rates to avoid financial losses. According to the Independent Petroleum Marketers Association of Nigeria, consumers are likely to begin seeing the effects of the price cut within the next few days as new supplies enter the market.
Speaking on the development, IPMAN National Publicity Secretary, Chinedu Ukadike, said petrol prices could range between N1,200 and N1,250 per litre in Lagos, while motorists in other parts of the country may pay slightly more due to transportation and distribution costs. He noted that loading activities often slow down whenever a new refinery price is announced, giving marketers time to exhaust older inventories before transitioning to cheaper stock.
The latest price adjustment follows a sharp decline in global oil prices, with Brent crude reportedly falling from about $87 to $78 per barrel after the ceasefire agreement between the US and Iran and the reopening of the Strait of Hormuz. While some stakeholders argue that fuel prices should fall even further, analysts believe the current reduction is a positive step that could provide much-needed relief for consumers. Industry observers say further declines are possible if crude oil prices continue their downward trajectory and market stability is maintained.
source: punch