Dangote Refinery Slashes Petrol Price by N75 as Global Oil Prices Drop

Relief may be on the way for Nigerian consumers as the Dangote Refinery cuts the price of petrol, reversing a recent increase that had pushed costs higher across the market.

Industry sources say the refinery has reduced its ex-gantry price of Premium Motor Spirit (PMS) by N75, bringing it down to N1,200 per litre. The adjustment comes shortly after prices were raised to about N1,275 per litre amid volatility in global oil markets.

The latest move is closely tied to a sharp decline in crude oil prices, driven by easing geopolitical tensions in the Middle East. Brent crude has fallen to around $95 per barrel, while West Texas Intermediate (WTI) dropped to roughly $97, both recording double-digit percentage declines.

The drop in oil prices follows a temporary ceasefire agreement between the United States and Iran, which has helped calm fears of supply disruptions through key global routes such as the Strait of Hormuz.

For fuel marketers and commuters, the price cut offers a rare moment of relief. Many have expressed optimism that the reduction could ease the pressure of rising transport and living costs, which have been exacerbated by persistent inflation.

Market watchers believe the refinery’s decision could trigger a wider adjustment in retail fuel prices if the downward trend in global crude prices is sustained. Such a shift would have a direct impact on transportation, food prices, and overall economic activity.

However, analysts caution that Nigeria remains highly exposed to international oil price movements, despite increased domestic refining capacity. The Dangote Refinery’s pricing model continues to align with global benchmarks, meaning local prices can still fluctuate with external shocks.

Since commencing operations in 2023, the refinery has been expected to reduce Nigeria’s reliance on imported fuel. Yet, the latest development underscores the complex reality — domestic production alone may not fully shield the economy from global market forces.