Dangote Petroleum Refinery has reduced its ex-gantry price of petrol by N100 and diesel by N190 following days of sharp increases driven by rising global crude oil prices.
The recent drop offers a measure of relief for Nigerians who had seen pump prices surge from N774 per litre to about N1,175 within a short period amid volatility in the international oil market.
Before the adjustment, the price of Premium Motor Spirit (PMS) had climbed steadily from N774 to N874 and later to N1,175 per litre. The latest reduction marks the first price cut after the consecutive increases that followed the escalation of tensions between Iran and Israel, as well as broader hostilities involving the United States.
The geopolitical crisis has disrupted global energy markets, pushing crude prices higher and forcing refiners and fuel marketers to adjust domestic pricing.
Dangote Refinery said the latest reduction reflects a drop in global crude oil prices, which reportedly declined to about $90 per barrel on Tuesday — the first notable dip since the conflict intensified.
“As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices,” the company said in a statement.
“All our crudes are priced on the global benchmark price plus a $3 to $6 additional premium. Our forex is paid at the prevailing market rate of the day, with no subsidy in both crude and forex.
“For the avoidance of doubt, the crude supplied under the Naira-for-Crude arrangement is priced according to the global benchmark price plus a premium which is then converted to naira using the prevailing market exchange rate.”
The conflict in the Middle East, now entering its second week, continues to be closely monitored by governments and financial markets worldwide. The war has triggered broader economic disruptions, including fluctuations in global energy prices and temporary airport closures in some regions.
Speaking on the conflict, U.S. President Donald Trump suggested that the military campaign was nearing its objective.
“I think the war is very complete, pretty much. They have no navy, no communications, and they’ve got no air force,” Trump told CBS News in a phone interview.
“If you look, they have nothing left. There’s nothing left in a military sense,” he added.
Despite the recent price cut, oil marketers and economic analysts warn that fuel prices in Nigeria could remain volatile if global tensions persist.
President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Dr. Billy Gillis-Harry, said the Dangote Refinery remains a crucial buffer against supply shortages, even as prices fluctuate.
“The reality is that if you look at the volatility in the price from what we are seeing today, the Dangote Refinery is the salvation for us due to the consistent source of product, which is much more important at this time than anything,” he said.
“The availability of product is much more important than pricing. The pricing we predicted has risen above N1,000 per litre before reaching N1,175 at the gantry.”
Industry experts say while the refinery’s presence has improved fuel availability in Nigeria, global oil market dynamics will continue to play a major role in determining local pump prices.
