Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by N75 per litre, citing easing tensions in the Middle East and a decline in global energy prices.
In a circular issued to fuel marketers on Monday, the refinery announced that the new ex-depot price would take effect from midnight on June 16.
Under the revised pricing structure, the gantry price of petrol has been reduced from N1,250 per litre to N1,175 per litre. The coastal price per metric tonne was also cut from N1,595,790 to N1,495,215.
“Following the de-escalation of tensions in the Middle East, which has impacted energy prices, we have reviewed our premium motor spirit gantry/coastal price,” the refinery said in the notice.
It added that all outstanding unloaded gantry volumes would be repriced at the new rate from 12:00 a.m. on June 16.
“We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery,” the circular stated.
According to Petroleumprice.ng, the Dangote refinery now offers one of the cheapest petrol prices in the market, with many marketers selling above N1,240 per litre as of Monday.
The latest price adjustment comes amid improving conditions in the global oil market following reports of a peace agreement between the United States and Iran, including moves to reopen the Strait of Hormuz a major route for global oil shipments.
Crude oil prices had surged in recent months after hostilities between the United States and Iran escalated on February 28, pushing prices above $120 per barrel and triggering higher fuel costs worldwide.
In Nigeria, petrol prices climbed from around N830 per litre to nearly N1,300 during the period, while diesel and aviation fuel also recorded significant increases.
With oil prices now retreating, analysts say the latest reduction by Dangote Refinery could pave the way for further cuts in domestic fuel prices.
Oil prices continued to decline on Monday after Washington and Tehran announced an agreement to end hostilities in the Middle East and reopen the Strait of Hormuz.
Brent crude, the global oil benchmark, fell to around $83 per barrel, down sharply from the highs recorded during the conflict.
Industry observers believe petrol prices in Nigeria could fall further if the peace agreement holds and crude prices continue their downward trend.
However, a Dangote Refinery official cautioned that immediate reductions may be limited because the refinery still holds previously purchased crude acquired at higher prices.
Should market conditions remain stable, Nigerians may see additional relief at the pump in the coming weeks.
