Petrol Prices Fall Nationwide as Dangote Refinery Cuts Ex-Depot Rate

Petrol Prices Fall Nationwide as Dangote Refinery Cuts Ex-Depot Rate

Nigeria’s petrol prices have begun to decline across several parts of the country after Dangote Refinery announced a fresh reduction in its ex-depot price of Premium Motor Spirit (PMS), raising hopes of further relief for motorists and businesses grappling with high fuel costs.

The 650,000 barrels-per-day refinery reduced its ex-depot petrol price from N1,275 per litre to N1,250 per litre, while also lowering the ex-depot price of diesel from N1,800 per litre to N1,700 per litre. The company attributed the latest adjustment to a decline in global crude oil prices and its commitment to making refined petroleum products more affordable for Nigerians.

The development has already triggered price reductions at several filling stations, particularly in Lagos and Ogun states, where some marketers are now selling petrol below N1,300 per litre.

Checks along the Mowe-Ibafo axis of the Lagos-Ibadan Expressway showed that marketers moved swiftly to adjust pump prices following the refinery’s announcement. MRS stations reduced petrol prices to N1,286 per litre, while NIPCO and Heyden sold at N1,290 per litre. SGR outlets adjusted their pump price to N1,297 per litre.

The downward trend was also noticeable in the diesel market, where several stations reduced prices to around N1,800 per litre from previous levels of about N1,900 per litre.

However, not all retailers have fully reflected the latest reduction. Some outlets operated by the Nigerian National Petroleum Company Limited (NNPC) were still selling petrol above the N1,300 mark. In Ibafo, NNPC stations dispensed fuel at N1,305 per litre, while Mobil and Asharami stations sold at N1,310 and N1,320 per litre respectively.

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Industry observers believe the latest move by Dangote Refinery could lead to additional price adjustments nationwide as marketers exhaust existing inventories and take delivery of products purchased at the new rate.

The reduction comes after months of sustained pressure on consumers following a sharp rise in fuel prices. Petrol prices had surged from around N830 per litre to over N1,300 per litre in many parts of the country as global crude oil prices climbed above $115 per barrel amid tensions involving the United States and Iran.

Energy analysts say increasing local refining capacity is beginning to reshape Nigeria’s downstream petroleum market. Since commencing large-scale operations, Dangote Refinery has emerged as the country’s dominant fuel supplier, significantly reducing dependence on imported petroleum products and introducing stronger competition among marketers.

The latest price cut is expected to provide some relief to households and businesses struggling with rising transportation, logistics and production costs. Many Nigerians are also hoping that continued declines in global crude prices and improved local supply will force further reductions in pump prices in the coming weeks.

Stakeholders, however, caution that future petrol price movements will continue to depend on global oil market trends, foreign exchange stability, transportation costs and overall supply conditions within the domestic market.

For now, motorists are beginning to enjoy modest savings at the pump, with the prospect of more competitive pricing as marketers respond to changing market realities.

Petrol Prices Fall Nationwide as Dangote Refinery Cuts Ex-Depot Rate