KEY POINTS
- Dangote refinery cut its petrol gantry price by N75 to N1,175 a litre.
- The refinery linked the cut to easing Middle East tensions and a US-Iran deal.
- An official said petrol could fall to N900, but “expensive crude” remains in its tanks.
Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit by N75 per litre. In a circular to fuel marketers on Monday, the refinery linked the cut to the de-escalation of tensions in the Middle East, which had driven energy prices higher over the past three months.
Dangote petrol price cut tied to falling crude
According to the circular, the new gantry price now stands at N1,175 per litre, down from N1,250, while the coastal price per metric tonne falls from N1,595,790 to N1,495,215. Moreover, the refinery said the new rates take effect from midnight and that it would reprice all outstanding unloaded gantry volumes at the lower rate from 12:00 a.m. on June 16.
“We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply,” the circular said. Consequently, the move tightened the refinery’s lead on price, as Petroleumprice.ng noted that Dangote now offers the cheapest petrol, with many marketers selling around N1,240 on Monday.
Easing oil market drives relief
The reduction followed easing pressure in the global oil market. Oil prices fell on Monday after the United States and Iran signed a ceasefire to end hostilities in the Middle East and reopen the Strait of Hormuz. Furthermore, Brent crude, the global benchmark, dropped to about $83 per barrel.
Crude had surged earlier in the conflict, which began on February 28, climbing above $120 per barrel and pushing fuel prices up sharply. During that period, petrol in Nigeria rose from about N830 per litre to around N1,300, while diesel and aviation fuel also jumped. Therefore, the retreat in crude prices now opens room for further relief at the pump.
Indeed, It was reported that petrol could fall to as low as N900 per litre in the coming days if the peace deal fully holds. However, a Dangote refinery official tempered expectations, cautioning that the plant still holds “expensive crude” in its tanks. Ultimately, Nigerians await deeper cuts, though the pace will hinge on how quickly the Middle East crisis de-escalates and how fast cheaper crude feeds through the supply chain.
