Dangote Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS) by N75, bringing it down to N1,200 per litre, according to industry sources.
The adjustment follows a recent increase to approximately N1,275 per litre, which the refinery attributed to volatility in global oil markets affecting production and supply costs.
The latest price cut is linked to a sharp decline in international crude oil prices. Brent crude futures fell to $95.05 per barrel, a 13 per cent drop, while West Texas Intermediate (WTI) crude closed at $97.18, down nearly 14 per cent.
Analysts attribute the downturn to easing geopolitical tensions in the Middle East, particularly a conditional two-week ceasefire agreement between the United States and Iran, which has lessened concerns over potential supply disruptions.
Fuel marketers and commuters in major Nigerian cities have welcomed the development, with hopes that lower pump prices could help ease the financial strain caused by persistent inflation.
Energy sector observers suggest the refinery’s price reduction could influence retail petrol prices nationwide, especially if global crude prices remain subdued.
The situation underscores Nigeria’s continued exposure to international oil price movements, despite the operational launch of the Dangote Refinery in 2023, which was expected to reduce the country’s reliance on imported fuel.
Still, the facility’s pricing remains closely tied to global benchmarks such as Brent and WTI crude futures, reflecting the interconnected nature of domestic and international energy markets.
Industry watchers will be monitoring whether further declines in crude prices translate into additional relief at the pump, and how the refinery’s pricing strategy evolves in response to shifting global supply dynamics.
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