Key points
- Dangote Petroleum Refinery has reduced its petrol gantry price by N75 per litre, from N1,250 to N1,175.
- The refinery attributed the adjustment to easing tensions in the Middle East and declining global crude oil prices.
- Industry stakeholders say the reduction could trigger further cuts in retail fuel prices nationwide.
Main story
Dangote Petroleum Refinery has reduced its ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by N75 per litre, lowering the gantry price from N1,250 to N1,175 per litre.
The refinery announced the price adjustment in a circular issued to fuel marketers on Monday, citing the recent de-escalation of geopolitical tensions in the Middle East and the resulting decline in global energy prices.
According to the circular, the refinery also reviewed its coastal supply price, reducing it from N1,595,790 per metric tonne to N1,495,215 per metric tonne.
The company stated that the new pricing structure took effect from midnight on June 16, adding that all outstanding unloaded gantry volumes would be repriced at the new rate.
“Following the de-escalation of tensions in the Middle East, which has impacted energy prices, we wish to inform you that we have reviewed our Premium Motor Spirit gantry/coastal price,” the refinery stated.
The development comes as global crude oil prices continue to retreat following reports of a ceasefire agreement between the United States and Iran, ending months of hostilities that had disrupted global energy markets and heightened concerns over oil supply routes.
Industry data indicates that Dangote’s latest ex-depot price is currently the lowest among major suppliers in the domestic market, potentially positioning the refinery to influence broader retail pricing trends across the country.
The issues
The latest price adjustment underscores the direct relationship between international crude oil prices and domestic fuel costs in Nigeria’s deregulated petroleum market.
For much of the past three months, escalating tensions between the United States and Iran drove crude oil prices above $120 per barrel, resulting in sharp increases in fuel prices across several countries, including Nigeria.
Locally, petrol prices surged from about N830 per litre to nearly N1,300 per litre, while diesel and aviation fuel prices also recorded significant increases, worsening transportation costs and inflationary pressures on households and businesses.
Although global oil prices have begun to decline, analysts note that domestic fuel prices may not immediately reflect international market movements due to existing inventories purchased at higher crude costs and other operational considerations.
What’s being said
Dangote Refinery attributed the latest reduction to improving conditions in the international oil market following diplomatic efforts to restore stability in the Middle East.
According to industry platform Petroleumprice.ng, the refinery’s revised gantry price now ranks among the most competitive in the market, with many marketers previously purchasing products at around N1,240 per litre.
Market analysts say the reopening of the Strait of Hormuz—a strategic global shipping route—could further stabilise crude supply and place additional downward pressure on oil prices.
Stakeholders within the downstream sector have also expressed optimism that continued stability in global energy markets could translate into lower fuel costs for consumers.
However, officials familiar with refinery operations have cautioned that the facility is still processing crude oil acquired during periods of elevated prices. This factor could moderate the pace of future reductions.
A senior refinery source noted that while petrol prices could eventually fall to around N900 per litre, such a development would depend on sustained declines in crude oil prices and the complete adjustment of market fundamentals.
What’s next
Industry observers will closely monitor developments in global oil markets, particularly the implementation of the reported peace agreement between the United States and Iran and the full reopening of the Strait of Hormuz.
Analysts expect marketers and independent retail operators to review pump prices in response to the refinery’s latest adjustment.
Should crude oil prices continue their downward trajectory, additional reductions in ex-depot and retail fuel prices may follow in the coming weeks.
Attention will also be focused on how quickly savings from lower crude costs are transmitted through the supply chain to end consumers.
Bottom line
Dangote Refinery’s N75 per litre price reduction marks the most significant downward adjustment in recent months and signals the potential beginning of a broader decline in fuel prices. While Nigerians may not experience immediate relief at filling stations, the combination of easing geopolitical tensions, lower crude oil prices and increased domestic refining capacity has strengthened expectations that petrol prices could continue to fall if global market stability is sustained.
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