Motorists across Nigeria may soon enjoy relief at filling stations following a fresh reduction in petrol prices by the Dangote Refinery, which on Tuesday slashed its ex-depot price of Premium Motor Spirit (PMS) by N75 per litre.
The refinery announced that its gantry price has been reduced from N1,250 per litre to N1,175 per litre, with the new rate taking effect from midnight on June 16.
The development is expected to trigger a fresh round of price adjustments in the downstream petroleum sector, as fuel marketers and depot operators review their retail pricing structures in response to the reduction.
In a notice issued to customers, the refinery attributed the price cut to easing tensions in the Middle East and the resulting decline in global energy prices.
“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 (PMS) gantry/coastal price,” the company stated.
Beyond the reduction in gantry prices, Dangote Refinery also announced a cut in its coastal loading price, reducing the rate by N100,575 per metric tonne from N1,595,790 to N1,495,215 per metric tonne.
The refinery further disclosed that all outstanding unloaded gantry volumes would be repriced in line with the new rate from the effective date.
Industry stakeholders say the latest adjustment is likely to intensify competition in the downstream market, with private depot owners expected to follow suit by lowering their own prices in order to remain competitive.
The reduction comes on the heels of a significant correction in international oil prices after diplomatic efforts involving the United States and Iran eased concerns over possible disruptions to crude oil supplies through the Strait of Hormuz, one of the world’s most strategic oil transit routes.
In recent weeks, escalating tensions involving Iran, Israel and the United States had driven crude prices upward amid fears of supply shortages. However, growing optimism over a possible diplomatic resolution has since reversed those gains, leading to a decline in global oil prices.
Analysts believe the latest move by the refinery could translate into lower pump prices nationwide if marketers pass the savings on to consumers.
The price cut further underscores the growing influence of the 650,000-barrels-per-day Dangote Refinery on Nigeria’s petroleum market, with fuel pricing trends increasingly shaped by decisions taken by the facility.
With global crude prices showing signs of stability and market sentiment improving, industry observers say additional reductions in petrol and diesel prices may be on the horizon if international energy markets continue on their current trajectory.
