Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (petrol) by N75 per litre, lowering the price from N1,250 to N1,175 per litre. The refinery said the adjustment was prompted by easing tensions in the Middle East, which had previously driven up global energy prices.
In a notice to marketers, the refinery also reduced its coastal price per metric tonne from N1.59m to N1.49m. The new pricing took effect from midnight on June 16, with all outstanding unloaded gantry volumes to be repriced at the revised rate.
The price cut follows a decline in crude oil prices after the United States and Iran reached a ceasefire agreement and began discussions on reopening the Strait of Hormuz, a critical global oil shipping route.
During the three-month conflict, crude oil prices surged above $120 per barrel, contributing to a sharp rise in fuel prices across several countries, including Nigeria. Petrol prices locally climbed from around N830 per litre to nearly N1,300 per litre during the period.
With crude prices now falling to about $83 per barrel, industry players expect the reduction by Dangote Refinery to create room for lower fuel prices across the domestic market.
According to petroleum market data, Dangote’s new gantry price makes it one of the cheapest sources of petrol supply in Nigeria, where many marketers had been purchasing the product at around N1,240 per litre.
Analysts say further reductions may be possible if global oil prices continue to decline and the Middle East peace deal holds. However, refinery officials noted that the pace of future price cuts could be influenced by the cost of crude oil already purchased at higher prices during the conflict.
