The Dangote Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by N75 to N1,200 per litre, providing a measure of relief to consumers and industry players.
The price adjustment, confirmed by industry insiders on Wednesday, comes shortly after the refinery had raised petrol prices to approximately N1,275 per litre. That earlier increase was attributed to volatility in the global oil market, which had driven up production and supply costs.
The latest reduction is closely tied to a notable decline in global crude oil prices. Brent crude futures fell to $95.05 per barrel, marking a 13 per cent drop, while West Texas Intermediate (WTI) crude settled at $97.18 per barrel, down by nearly 14 per cent.
Energy experts have linked the downturn in oil prices to shifting geopolitical dynamics in the Middle East. In particular, a conditional two-week ceasefire agreement between the United States and Iran has eased concerns about potential disruptions to global oil supply, contributing to market stability.
The price cut has been welcomed by fuel marketers and commuters across Nigeria, many of whom have struggled with rising living costs amid persistent inflation. There is growing optimism that the reduction could ease financial pressure on households and businesses.
Industry observers suggest that the refinery’s move may trigger a broader downward adjustment in retail petrol prices nationwide, particularly if the global trend of declining crude oil prices continues. However, they caution that sustained relief will depend on the stability of international markets.
Analysts also note that the development underscores Nigeria’s continued sensitivity to global oil price fluctuations, despite increased domestic refining capacity.
While the Dangote Refinery, which began operations in 2023, was expected to reduce reliance on fuel imports, its pricing remains closely aligned with international benchmarks.
As global oil dynamics evolve, stakeholders will be watching closely to see whether the current price relief can be maintained in the weeks ahead.
