Dangote Slashes Petrol Price by N50 as Falling Crude Oil Prices Raise Hopes for Cheaper Fuel

Nigeria’s fuel market received a fresh boost on Thursday as Dangote Petroleum Refinery announced a N50 reduction in its petrol gantry price, bringing the cost down from N1,175 to N1,125 per litre. The price adjustment comes amid a sustained decline in global crude oil prices following easing tensions in the Middle East, a development that has begun to reshape energy markets around the world. For many Nigerians struggling with rising transportation and living costs, the announcement signals a potential step toward more affordable fuel prices.

According to a notice issued to customers by the refinery’s Group Commercial Operations, the new pricing structure took effect from midnight on Thursday. The company explained that the decision was driven by the de-escalation of geopolitical tensions in the Middle East, which has contributed to lower oil prices globally. Alongside the reduction in petrol prices, the refinery also cut its coastal price from N1.49 million to N1.43 million per metric tonne, reflecting changing market realities.

The latest development follows a sharp drop in crude oil prices, which have fallen from highs of over $120 per barrel during the height of the United States-Iran conflict to around $73 per barrel after diplomatic efforts helped calm tensions. During the crisis, petrol prices in Nigeria surged above N1,300 per litre in several cities, while diesel and aviation fuel costs also climbed significantly, placing additional pressure on businesses, transport operators, and households.

Although the N50 reduction may appear modest, industry stakeholders believe it could spark further price cuts across fuel depots and retail outlets nationwide. Many filling stations are still selling petrol for around N1,205 per litre, despite the substantial decline in global crude oil prices. Consumers and analysts have increasingly questioned why local fuel prices have not fallen at the same pace as international oil benchmarks.

With Dangote Refinery now playing a major role in determining fuel pricing in Nigeria, market observers say the latest adjustment could pave the way for broader reductions in the coming weeks. Many Nigerians had hoped petrol prices would fall below N1,000 per litre as crude oil prices retreated, and while that target remains out of reach for now, the refinery’s latest move has renewed optimism that further relief may soon be on the horizon.

source: punch