Dangote cuts fuel price to N1,200 per litre following global oil drop

Dangote Refinery has reversed its recent petrol price hike, lowering the ex-gantry cost of Premium Motor Spirit (PMS) by N75 to N1,200 per litre, industry sources said on Wednesday.

The cut comes after the refinery had raised petrol prices to about N1,275 per litre, blaming higher production and supply costs caused by instability in the global oil market.

The new reduction follows a sharp fall in international crude prices. Brent crude futures dropped to $95.05 per barrel, down 13 per cent, while West Texas Intermediate (WTI) crude ended at $97.18, falling almost 14 per cent.

Experts say the downturn in oil prices is largely driven by geopolitical shifts in the Middle East, especially a conditional two-week ceasefire agreement between the United States and Iran, which has reduced fears of supply disruptions.

Fuel marketers and commuters in major cities have reacted positively to the development, expressing hope that the lower price will help ease the burden of rising living costs amid ongoing inflation.

Observers within the energy sector believe the refinery’s price cut could have a ripple effect on retail petrol prices across the country, particularly if the global decline in crude oil prices continues.

Analysts also point out that the situation highlights Nigeria’s increasing sensitivity to international oil price movements, despite improvements in domestic refining capacity.

The Dangote Refinery, which commenced operations in 2023, was anticipated to cut down Nigeria’s dependence on fuel imports.

Nonetheless, its pricing strategy still aligns closely with international oil benchmarks like Brent and WTI crude futures

Join Very Nigerian WhatsApp Channel
For Verified Breaking News, Exclusive Reports, Trending Stories, And Real-time Updates.
CLICk HERE TO JOIN!