Emmanuel Afonja
Business Column Analyst
Nigeria’s largest refining facility, the Dangote Petroleum Refinery, has announced a fresh reduction in the price of petrol, offering a measure of relief to consumers after weeks of steep increases.
The refinery confirmed on Tuesday that its ex-gantry price for Premium Motor Spirit (petrol) has been lowered to ₦1,075 per litre, representing a ₦100 drop from the previous rate of ₦1,175 per litre.
New Fuel Price Template
Under the updated pricing structure released by the company, petrol distributed through coastal channels will now sell at ₦1,050 per litre.
The refinery also revised the price of diesel downward. Automotive Gas Oil (diesel) now sells at ₦1,430 per litre, reflecting a ₦190 reduction from the earlier price of ₦1,620 per litre.
However, the refinery clarified that these ex-gantry prices do not include statutory levies imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which may influence the final retail cost to consumers.
Price Swings in Recent Weeks
The latest adjustment marks the first price cut after three consecutive hikes that pushed petrol costs sharply upward in early March.
Earlier price changes saw petrol climb from ₦874 per litre on March 2 to ₦995 per litre on March 7, before rising further to ₦1,175 per litre on Monday.
Industry observers linked those increases to the spike in global crude oil prices following geopolitical tensions involving the United States, Iran, and Israel, which unsettled energy markets worldwide.
Falling Oil Prices Bring Temporary Relief
Tuesday’s price reduction coincided with a dip in international crude oil prices, which fell to around $90 per barrel—the first significant decline since the Middle East crisis began.
The easing of global prices provided the refinery with room to reduce its local fuel prices, easing pressure on consumers and businesses already grappling with high energy costs.
Refinery Not Immune to Global Market Forces
Speaking earlier about fuel price fluctuations, the refinery’s Chief Executive Officer David Bird explained that the plant operates within the dynamics of the global energy market.
According to him, because the refinery purchases crude oil at international benchmark prices, domestic fuel prices from the facility will naturally respond to movements in global oil markets.
Implications for Nigerian Consumers
While the reduction may not immediately translate into large drops at filling stations due to additional charges and distribution costs, the move is expected to ease pressure on fuel supply chains and possibly stabilise pump prices in the coming days.
For millions of Nigerians struggling with high transport and energy costs, the adjustment signals that fuel prices could continue to shift depending on developments in the global oil market.
