The Dangote Petroleum Refinery & Petrochemicals has cut the ex-gantry price of Premium Motor Spirit (petrol) to N1,200 per litre, which is lower than it was before. This is because global crude oil prices have dropped sharply due to geopolitical events.
The recent change is a N75 drop from the previous price of roughly N1,275 per liter, which the refinery had set in reaction to rising international oil costs and worries over supplies, according to The PUNCH.
Last night, a high-ranking official at the refinery told our reporter that the facility changed its prices in accordance to current international crude oil benchmarks and market conditions.
“The change is in keeping with what is happening in the global economy. You know that there are still problems in the Middle East and that they affect the price of crude oil. The person, who talked in confidentially since they weren’t allowed to talk about it, said, “These are outside factors that directly affect the price of refined products.”
He went on to say, “The price of petrol has gone up by N75 to N1,275 per liter, which is about a five percent increase. The price of diesel has gone up more, by N200 to N1,950 per liter.” These developments are in line with what is happening in the global economy.
But this morning, the same refinery executive told our reporter that the refinery has changed its mind about raising pricing.
The person said that the price drop came as crude benchmarks fell sharply after former President Donald Trump announced a conditional two-week ceasefire deal with Iran, which calmed fears of supply problems in the Middle East.
On Wednesday, the price of Brent crude decreased 13.28 percent to $94.76 per barrel. This was because tensions between Iran, the US, and Israel were reducing.
West Texas Intermediate crude oil in the US also fell 14.72 percent to $96.31 a barrel.
Brent fell after President Donald Trump announced the US would put off planned military action against Iran for two weeks, but only if secure passage through the Strait of Hormuz was restored.
“Yes, the price has changed.” “This follows the current price of crude oil,” he said over the phone.
The refinery confirmed the new situation by saying that there had been no further rise in petrol prices, as some people had thought, and that the company had instead lowered its rates.
“A source from the corporation said that the prices are still the same: N1,200 per liter for the gantry and N1,153 per liter for the coastline.
The statement said, “We are keeping our current price and have not made any changes to our customers’ prices.”
The statement also said that the refinery was still committed to making sure that there was a constant supply in both the domestic and regional markets.
The most recent news comes as Nigeria’s downstream petroleum industry continues to deal with instability caused by changes in the global oil market, foreign exchange rates, and the supply chain.
The Dangote refinery, which opened in September 2024, has become a major player in the domestic petroleum market, affecting prices and supply patterns all over the country.
The refinery’s ability to respond to changes in global prices shows how Nigeria’s gasoline prices are becoming more connected to what happens in the rest of the world since the downstream industry was deregulated.
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