The Dangote Petroleum Refinery on Wednesday, April 8, reduced its ex-gantry petrol price to N1,200 per litre from the N1,275 per litre announced a day earlier.
The latest adjustment reverses Tuesday’s increase, which saw petrol prices rise by N75 per litre, representing about a 5.02 per cent jump, amid shifts in the global oil market.
The refinery also raised the price of Automotive Gas Oil, popularly known as diesel, by N200 per litre to N1,950 from N1,750. However, there are indications that diesel prices could also be reviewed downward, although no official announcement has been made.
Industry sources said the latest reduction in Dangote’s ex-depot petrol price is unlikely to have any major effect on the market because the higher rate remained in place for only a few hours.
The price reversal followed a sharp drop in international crude oil prices, with Brent crude falling to $95.05 per barrel, down about 13 per cent, while West Texas Intermediate settled at $97.18 per barrel, reflecting a decline of nearly 14 per cent.
Analysts linked the easing in oil prices to reduced geopolitical tensions after former US President Donald Trump announced a conditional two-week ceasefire involving Iran, calming fears over supply disruptions.
Iran also agreed to reopen the Strait of Hormuz, a key route through which about 20 per cent of global energy supply passes, for two weeks in exchange for a temporary ceasefire with the United States.
The arrangement is expected to create room for broader negotiations between both countries in a bid to end the six-week conflict that has led to thousands of deaths and worsened the global energy crisis.
The Punch reported that a senior official at the refinery said the pricing decisions were influenced by international crude oil benchmarks and wider market realities.
“The adjustment of prices is in line with global market trends. External factors, including tensions in the Middle East, directly impact refined product pricing.”
The development comes as the Major Energies Marketers Association of Nigeria disclosed that the Dangote Refinery had entered into partnerships with major fuel marketers to strengthen nationwide fuel supply and reduce the risks associated with relying on a single source.
Speaking during a webinar hosted by MEMAN, the association’s chairman, Hubb Stokman, said the partnership was aimed at improving efficiency in the downstream sector and addressing concerns over concentration risk.
According to him, although Nigeria now has a refinery capable of meeting most of the country’s fuel needs, dependence on a single facility could create challenges.
