Dangote Reduces Petrol Prices by ₦100 Amid Global Oil Volatility: What Nigerians Need to Know
Dangote Petroleum Refinery announced a ₦100 reduction in the ex-depot price of Premium Motor Spirit (PMS) yesterday, aiming to ease fuel costs for marketers and bulk buyers. The gantry price of petrol dropped to N1,075 per litre from N1,175, while coastal supply was adjusted to N1,050 per litre. Diesel (Automotive Gas Oil) also saw a ₦190 cut, from N1,620 to N1,430 per litre.
Despite this reduction, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) warns that consumers are unlikely to see a significant drop at the pumps immediately. According to PETROAN President Billy Gillis-Harry, downstream costs, distribution charges, and taxes could limit the impact of the refinery’s price adjustment on retail prices.
Global oil market volatility, triggered by geopolitical tensions and supply disruptions, continues to put pressure on domestic fuel costs. Gillis-Harry emphasized that international dynamics—such as crude price fluctuations and shipping challenges—play a key role in shaping local prices. “Nigerians should not expect petrol prices to drop suddenly,” he said, stressing the importance of a competitive market structure to protect consumers.
Market analysts say the timing of the price pass-through to pump stations remains uncertain, even as Dangote’s adjustment could lower loading costs for marketers. The refinery’s moves follow a week of fluctuating ex-depot prices, with previous upward revisions causing uncertainty among distributors who are now adopting a cautious “wait-and-see” approach.
Meanwhile, global tensions add another layer of complexity. US President Donald Trump warned that Iran would face “much, much harder” retaliation if it disrupts oil supplies in the Middle East, following Tehran’s missile and drone attacks. Such international events continue to influence global crude prices, underscoring the fragile environment in which Nigeria’s downstream petroleum sector operates.
source: The sun