Dangote Refinery Slashes Petrol Price to N1,200/Litre Amid Rising Global Crude Oil Costs

Dangote Refinery Slashes Petrol Price to N1,200/Litre Amid Rising Global Crude Oil Costs

Nigeria’s downstream oil sector may witness fresh relief as Dangote Petroleum Refinery & Petrochemicals has reduced its ex-depot price of Premium Motor Spirit (PMS) to N1,200 per litre, defying the upward trend in global crude oil prices triggered by escalating tensions in the Middle East.

In a move expected to impact fuel pricing dynamics across the country, Dangote Petroleum Refinery & Petrochemicals has announced a reduction in its gantry price for petrol to N1,200 per litre, while setting a coastal price at N1,153 per litre.

The price cut comes despite mounting pressure in international oil markets, where crude oil prices have continued to rise due to geopolitical instability in the Middle East. The crisis has disrupted supply chains, increased freight costs, and driven up insurance premiums for oil shipments globally.

Industry analysts note that the refinery’s decision to lower its ex-depot price runs counter to prevailing global trends, where refiners are typically compelled to adjust prices upward in response to higher crude input costs.

The development is expected to have a cascading effect on Nigeria’s downstream petroleum sector. With a reduction in ex-depot prices, petroleum marketers may benefit from lower supply costs, a factor that could translate into reduced pump prices for consumers if sustained.

Experts also highlight that Nigeria’s growing domestic refining capacity is beginning to play a stabilising role in the energy market. The operations of Dangote Refinery, regarded as Africa’s largest single-train refinery, are increasingly seen as a buffer against external shocks, even as global uncertainties persist.

While the full impact of the price adjustment will depend on distribution, logistics, and market competition, stakeholders remain optimistic that the move could provide short-term relief to consumers grappling with high fuel costs.

The refinery’s pricing decision underscores its strategic position in shaping fuel supply and pricing trends within Nigeria’s evolving oil and gas landscape.