The Dangote Petroleum Refinery has reduced its petrol loading price by N25 per litre, lowering the gantry price from N1,275 to N1,250 per litre. The move comes amid a decline in global crude oil prices and growing optimism in the international energy market.
A senior official within the Dangote Group confirmed the development on Saturday, explaining that the adjustment was influenced by the recent drop in crude oil prices worldwide. According to the source, the refinery is closely monitoring market conditions and responding to changes in the global oil environment.
The official noted that while oil prices have fallen, the market remains unstable and unpredictable. As a result, industry players are still exercising caution despite the current relief in prices.
The reduction follows expectations that fuel prices in Nigeria could begin to ease after reports of diplomatic progress between the United States and Iran. Ongoing discussions aimed at reopening the Strait of Hormuz have helped calm fears of supply disruptions in the global oil market.
The Strait of Hormuz is one of the world’s most important oil transportation routes. Any threat to activities in the region often leads to sharp increases in crude oil prices because of concerns about supply shortages.
Recent market developments have seen crude oil prices fall significantly. Oil traders reported that prices dropped from around $111 per barrel in the previous week to approximately $91 per barrel by Saturday. The decline was largely driven by expectations that tensions in the Middle East could ease in the coming weeks.
Industry data also showed that fuel depot prices had already started adjusting before Dangote’s latest move. Several fuel marketers, including Aiteo and NIPCO, were reportedly selling petrol at N1,272 per litre, while Integrated Energy, Ascon Oil, and African Terminal were trading around N1,274 per litre. These prices were slightly below Dangote Refinery’s previous gantry rate of N1,275 per litre.
The recent price reduction may bring some relief to fuel marketers and consumers who have been dealing with rising energy costs over the past few months.
Crude oil prices had surged sharply following the outbreak of tensions between the United States and Iran earlier in the year. During the period of uncertainty, oil prices climbed from below $70 per barrel to above $100, reaching as high as $115 at certain points.
The increase in crude oil prices triggered higher fuel costs across many countries, including Nigeria. Locally, petrol prices rose from about N830 per litre to around N1,300 per litre. Diesel and aviation fuel prices also recorded significant increases, putting pressure on businesses and transport operators.
With crude oil prices now moving downward, many stakeholders in the petroleum sector are hopeful that further reductions in fuel prices could follow if the trend continues. Analysts believe that sustained stability in the international oil market could create room for additional price adjustments in the weeks ahead.
For now, the Dangote Refinery’s latest price cut signals a positive development for Nigeria’s fuel market and may contribute to easing some of the cost pressures faced by consumers and businesses.
