Fresh hopes of lower fuel prices have emerged across the country following the decision by Dangote Petroleum Refinery to slash the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by N75 per litre.
The refinery announced on Monday that its gantry price had been reduced from N1,250 per litre to N1,175 per litre, citing the easing of geopolitical tensions in the Middle East and the resulting decline in global energy prices.
In a notice sent to fuel marketers, the company said the revised pricing would take effect from midnight on June 16, 2026.
The refinery also reviewed its coastal supply price downward, reducing the cost per metric tonne from N1,595,790 to N1,495,215.
According to the company, all outstanding unloaded gantry volumes would be repriced in line with the new rate.
The latest adjustment follows a significant shift in the international oil market after the United States and Iran reportedly reached an agreement to end months of hostilities and reopen the Strait of Hormuz, one of the world's most strategic oil transit routes.
The conflict, which lasted for several months, had pushed crude oil prices sharply higher and triggered fuel price increases across several countries, including Nigeria.
During the crisis, crude prices surged beyond $120 per barrel, causing a spike in the cost of refined petroleum products. As a result, petrol prices in Nigeria climbed from about N830 per litre to nearly N1,300 per litre, placing additional pressure on households and businesses already grappling with rising living costs.
However, with tensions easing and oil supply concerns subsiding, global crude prices have started trending downward, prompting expectations of lower fuel costs.
Market observers say Dangote Refinery's latest move could trigger further reductions across the downstream petroleum sector, especially as marketers adjust to the new pricing structure.
Industry sources indicated that petrol from the refinery had been selling at around N1,240 per litre before the latest review, making the N75 reduction one of the most notable price cuts since the beginning of the year.
Analysts believe the development could have a positive impact on transportation costs, production expenses and inflation, particularly if marketers pass the savings on to consumers.
The reduction is also expected to strengthen competition among fuel suppliers, with independent marketers likely to adjust their prices in response to the refinery's new rate.
There are growing expectations that pump prices may decline further if crude oil prices continue to fall and the peace accord between the United States and Iran remains effective.
Some industry experts have projected that petrol prices could eventually drop to around N900 per litre if current trends in the global oil market are sustained.
Nevertheless, stakeholders caution that the full benefits may not be felt immediately, as marketers and refiners are still dealing with inventories purchased when crude oil prices were considerably higher.
A refinery official noted that while there is room for additional reductions, existing stocks produced from expensive crude oil would continue to influence pricing decisions in the short term.
For millions of Nigerians burdened by high transportation and energy costs, the latest price cut represents a welcome development and a potential sign of broader relief ahead.
Should the downward trend in global crude prices persist, consumers may begin to see further reductions at filling stations in the coming weeks, offering some respite from the economic pressures that have characterised much of the year.
Leave a Reply