Dangote Petroleum Refinery has announced another reduction in the price of Premium Motor Spirit (PMS), lowering its ex-gantry rate by N50 per litre as falling global crude oil prices continue to ease pressure on the energy market.
In a notice issued to customers, the refinery disclosed that its ex-depot price has been reduced from N1,175 per litre to N1,125 per litre. The company also cut its coastal supply rate from N1,495,215 per metric tonne to N1,428,165 per metric tonne.
The latest adjustment comes barely a week after the refinery reduced its ex-gantry price by N75 per litre, bringing it down from N1,250 to N1,175 per litre.
Explaining the latest review, Dangote Refinery attributed the decision to the decline in global energy prices following the easing of geopolitical tensions in the Middle East.
The company noted that the softening of international oil prices has created room for downward adjustments in domestic fuel pricing.
The refinery had earlier raised petrol prices several times this year amid concerns over crude oil supply disruptions linked to tensions in the Middle East and uncertainty in global oil markets. In March, the company increased its ex-gantry price to N1,175 per litre after a surge in crude prices triggered by the regional conflict.
Industry stakeholders are expected to closely monitor the latest price cut, as retail and depot fuel prices across Nigeria typically reflect changes in refiners’ pricing structures.
Analysts say the reduction could lead to lower pump prices nationwide as marketers adjust their pricing to align with the new ex-depot rate.
The decline in global oil prices followed the signing of a peace agreement between the United States and Iran in Switzerland, which ushered in a 60-day negotiation period aimed at sustaining the ceasefire and reducing tensions.
Brent crude, the international benchmark for oil prices, subsequently dropped to $72.97 per barrel, its lowest level since February when hostilities in the region began, providing further relief to global energy markets and supporting the latest reduction in petrol prices.
