Peter Uzoho
Nigeria’s downstream petroleum market received a major boost yesterday as Dangote Petroleum Refinery announced a significant reduction in its petrol ex-gantry price, cutting the rate by N75 per litre, from N1,250 to N1,175 per litre.
The new pricing, which takes effect from 12am today, June 16, comes amid the recent de-escalation of geopolitical tensions in the Middle East and a sharp decline in international crude oil prices.
In a notice issued to customers, the refinery said, “Following the de-escalation of tensions in the Middle East, which has impacted energy prices, we wish to inform you that we have reviewed our Premium Motor Spirit (PMS) gantry/coastal price.”
The refinery also reduced its coastal loading price by N100,575 per metric tonne, lowering the rate from N1,595,790 per metric tonne to N1,495,215 per metric tonne.
According to the communication, all outstanding unloaded gantry volumes will be repriced at the new rate from the effective date.
The latest adjustment is expected to trigger fresh competition across Nigeria’s downstream market, with private depot operators likely to respond with further price reductions in the coming days.
The development follows a sharp correction in global oil markets after the United States and Iran moved closer to a diplomatic agreement that could restore stability to the Strait of Hormuz, a critical global oil shipping route.
Over the past week, heightened tensions between Iran, Israel and the United States had pushed crude oil prices higher on fears of supply disruptions.
However, optimism surrounding a possible peace deal had reversed those gains, dragging international oil prices lower.
Industry players said the reduction could translate into lower pump prices nationwide if marketers passed on the cost savings to consumers.
The latest cut also reinforces Dangote Refinery’s growing influence over Nigeria’s fuel pricing landscape, as market participants increasingly adjust their pricing strategies in response to movements from the 650,000 barrels-per-day facility.
With crude oil prices retreating and market sentiment improving, analysts expect further downward adjustments across petrol and diesel prices if global energy markets remain stable in the coming weeks.
