Fuel Prices Dip as Dangote Refinery Slashes Petrol Rate Amid Global Oil Slide

(Fuel Pump. Photo Credit: Arise News)

Nigeria’s downstream petroleum market received a boost on Monday as Dangote Petroleum Refinery announced a significant cut to its petrol ex-gantry price, slashing the rate by N75 per litre, from N1,250 to N1,175.

The new pricing takes effect from midnight on June 16, coinciding with the recent de-escalation of geopolitical tensions in the Middle East and a sharp decline in international crude oil prices.

In a notice to customers, the refinery explained that the review of its Premium Motor Spirit (PMS) gantry and coastal price followed the easing of Middle East tensions, which had been affecting energy prices.

The refinery also reduced its coastal loading price by N100,575 per metric tonne, bringing the rate down from N1,595,790 to N1,495,215 per metric tonne.

According to the notice, all outstanding unloaded gantry volumes will be repriced at the new rate from the effective date.

The adjustment is expected to spark fresh competition across Nigeria’s downstream market, with private depot operators likely to follow with further price cuts in the coming days.

The development comes on the heels of a sharp correction in global oil markets, after the United States and Iran moved closer to a diplomatic agreement that could help restore stability to the Strait of Hormuz, a critical global oil shipping route.

Over the past week, heightened tensions between Iran, Israel, and the United States had pushed crude oil prices higher on fears of supply disruption, but optimism around a possible peace deal has since reversed those gains, pulling international oil prices lower.

Industry players said the price cut could translate into lower pump prices nationwide if marketers pass on the cost savings to consumers.

The latest reduction also underscores Dangote Refinery’s growing influence over Nigeria’s fuel pricing landscape, as market participants increasingly adjust their own pricing strategies in response to moves from the 650,000 barrels-per-day facility.

With crude oil prices retreating and market sentiment improving, analysts expect further downward adjustments to petrol and diesel prices if global energy markets remain stable in the coming weeks.