The Dangote Refinery has lowered the ex-gantry price of Premium Motor Spirit (PMS) to N1,200 per litre, reversing its recent increase, industry sources confirmed on Wednesday.
The adjustment represents a N75 reduction from the earlier price of about N1,275 per litre, which the refinery had attributed to volatility in the global oil market that raised production and supply costs.
The latest cut follows a notable decline in international crude oil prices. Brent crude dropped to $95.05 per barrel, marking a 13 per cent fall, while West Texas Intermediate settled at $97.18, down by nearly 14 per cent.
Market analysts link the drop in oil prices to easing geopolitical tensions in the Middle East, particularly a conditional two-week ceasefire involving the United States and Iran, which has reduced concerns about potential supply disruptions.
The development has been welcomed by fuel marketers and commuters across major cities, many of whom expressed optimism that the reduction could help cushion the impact of rising living costs driven by inflation.
Industry observers say the refinery’s decision may influence pump prices nationwide, especially if the downward trend in crude oil prices persists.
They also note that the situation reflects Nigeria’s growing exposure to global oil price movements, despite increased local refining capacity.
The Dangote Refinery, which began operations in 2023, was expected to reduce the country’s reliance on fuel imports, although its pricing continues to mirror international benchmarks such as Brent and WTI crude.
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