Dangote refinery slashes petrol price again, cuts Gantry rate by N50 to N1,125/litre

Dangote Refinery has announced another reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, lowering its nationwide gantry price from N1,175 per litre to N1,125 per litre.

The latest adjustment represents a N50 per litre decrease and marks the refinery’s second petrol price cut within two weeks, further easing pressure on fuel marketers and consumers amid declining global crude oil prices.

The reduction was confirmed on Thursday by the spokesperson of the Dangote Group, Anthony Chiejina, who said the revised pricing has already taken effect.

“It is true our petrol gantry price was reduced by N50 per litre,” Chiejina stated.

The latest review follows an earlier reduction announced on June 16, when the refinery cut its ex-depot petrol price by N75 per litre, a move that subsequently triggered reductions in retail fuel prices across several parts of the country.

With the new adjustment, Dangote Refinery has reduced its petrol gantry price by a cumulative N125 per litre within a two-week period.

In addition to the reduction in ex-depot petrol pricing, the refinery also reviewed downward its coastal supply price.

The coastal petrol supply price fell from N1,495,215 per metric tonne to N1,428,165 per metric tonne, representing a decrease of N67,050 per metric tonne.

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Industry stakeholders say the reduction is expected to lower procurement costs for fuel marketers and distributors, potentially creating room for further reductions at retail outlets nationwide.

The latest price cut comes amid a significant decline in global crude oil prices following the easing of tensions in the Middle East.

Benchmark crude prices, which had surged during the height of the regional crisis, have retreated to between $69 and $73 per barrel, levels last seen before geopolitical tensions disrupted global energy markets.

The fall in crude prices has reduced production and feedstock costs for refiners, creating an opportunity for downward adjustments in refined petroleum product prices.

Energy analysts note that the refinery’s latest decision reflects changing market fundamentals and highlights the increasing influence of domestic refining on fuel pricing dynamics in Nigeria.

The previous N75 per litre reduction announced by the refinery earlier this month led to a wave of retail fuel price cuts by marketers and filling stations across the country.

Market observers expect the latest N50 reduction to exert additional pressure on fuel retailers to adjust pump prices downward in the coming days.

Currently, petrol prices in Abuja and surrounding areas range between N1,241 and N1,305 per litre, depending on location and marketer.

However, the extent to which the latest ex-depot reduction will be reflected at filling stations will depend on existing stock levels, transportation costs, operational expenses, and competitive market forces.

Despite the recent reductions, many Nigerians are calling for more substantial decreases in pump prices, arguing that current retail rates remain significantly above levels recorded before the escalation of geopolitical tensions in the Middle East.

Prior to the spike in global oil prices triggered by the Iran-United States-Israel conflict, petrol sold for between N800 and N900 per litre in several locations across the country.

Consumers and industry groups have therefore urged marketers to pass on the full benefits of lower crude oil prices and reduced ex-depot rates to end-users.

The latest pricing decision reinforces Dangote Refinery’s growing influence in Nigeria’s downstream petroleum sector and underscores the role of domestic refining capacity in moderating fuel price volatility.

Analysts say if crude oil prices remain stable at current levels and exchange rate pressures ease, further reductions in petrol prices could occur in the coming weeks.

However, they caution that fuel pricing remains sensitive to global oil market movements, foreign exchange fluctuations, logistics costs, and government policies affecting the downstream sector.

For now, motorists, businesses, and households are expected to closely monitor how quickly marketers adjust pump prices in response to the refinery’s latest reduction, which could provide some relief from transportation and energy costs across the economy.