Dangote Cuts Petrol Price to N1,125/Litre After Global Oil Drop

Dangote Petroleum Refinery has cut its ex-gantry price for premium motor spirit (PMS, petrol) by N50 per litre, the company said in a notice to customers.

The refinery said the ex-depot price has been lowered from N1,175 to N1,125 per litre. Coastal supply rates were also reduced, from N1,495,215 per metric tonne to N1,428,165 per metric tonne.

Dangote attributed the revision to an easing of tensions in the Middle East, which it said has driven a decline in global energy prices. The company’s notice follows an earlier reduction last week, when it trimmed its ex-gantry price by N75 per litre — from N1,250 to N1,175 — also citing de-escalation of geopolitical tensions.

Earlier in the year, the refinery had increased prices several times amid supply concerns arising from Middle East tensions and disruptions to global oil flows. In March, for example, the plant raised its ex-gantry price to N1,175 per litre after a sharp rise in crude oil prices linked to the conflict.

Energy analysts and downstream marketers are likely to monitor the move closely, since depot and retail pump prices across Nigeria generally move in step with refiners’ pricing templates. The latest adjustment is therefore expected to put downward pressure on domestic petrol prices as marketers recalibrate.

The decline in global oil prices followed the signing of a peace agreement between the United States and Iran in Switzerland, which began a 60-day negotiation period. Brent crude, the global benchmark, fell to $72.97 per barrel — its lowest level since February, when the conflict began.