Dangote Refinery has reversed its recent petrol price increase, reducing the ex-gantry price of Premium Motor Spirit (PMS) by N75 to N1,200 per litre, according to industry sources.
The adjustment comes just days after the refinery raised its price to around N1,275 per litre, a move it attributed to volatility in the global oil market that drove up production and supply costs.
The latest price cut is largely linked to a notable drop in international crude oil prices. Brent crude futures have fallen to $95.05 per barrel, marking a 13 per cent decline, while West Texas Intermediate settled at $97.18, down by nearly 14 per cent.
Energy experts say the decline is being driven by changing geopolitical dynamics in the Middle East, particularly a conditional two-week ceasefire agreement between the United States and Iran.
The development has eased concerns about potential supply disruptions, contributing to the drop in oil prices.
The reduction has been positively received by fuel marketers and commuters across major cities, many of whom see it as a welcome relief amid persistent inflation and rising living costs.
Industry analysts suggest that the refinery’s decision could have a broader impact on pump prices nationwide, especially if the downward trend in global crude oil prices continues.
At the same time, the situation highlights Nigeria’s continued exposure to international oil market fluctuations, despite growing domestic refining capacity.
Since beginning operations in 2023, the Dangote Refinery has been expected to reduce the country’s reliance on imported fuel.
However, its pricing structure still closely tracks global benchmarks such as Brent and WTI crude futures, underscoring the influence of international market forces on local fuel prices.
