By Deborah Nnamdi
The Dangote Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS) by N75, bringing the new rate to N1,200 per litre, according to industry sources on Wednesday.
The adjustment comes weeks after the refinery increased its petrol price to about N1,275 per litre, citing volatility in global oil markets that had pushed up supply costs.
The latest reduction follows a significant drop in international crude oil prices. Brent crude futures fell to $95.05 per barrel, representing a 13 per cent decline, while West Texas Intermediate (WTI) crude dropped to $97.18, down nearly 14 per cent.
Analysts link the decline in crude prices to easing geopolitical tensions in the Middle East, particularly a conditional two-week ceasefire agreement between the United States and Iran, which has reduced fears of supply disruptions.
Fuel marketers and motorists across major cities have welcomed the price cut, expressing hope that it will help ease the high cost of living amid ongoing inflationary pressures.
Market observers say the refinery’s decision could influence pump prices nationwide, especially if the downward trend in global oil prices persists.
Energy experts also note that the development highlights Nigeria’s increasing sensitivity to global oil price movements, despite expanding domestic refining capacity.
The Dangote Refinery, which commenced operations in 2023, was expected to reduce the country’s dependence on imported petrol. However, its pricing structure continues to reflect global benchmarks such as Brent and WTI crude futures.
