Amanze Chinonye
The Dangote Petroleum Refinery has reduced the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by ₦50 per litre, lowering the price from ₦1,175 to ₦1,125 per litre in a move expected to ease pressure on fuel costs across Nigeria, Prime Business Africa reports.
The new pricing, which took effect immediately, was conveyed to customers in a notice issued by the refinery. It also reduced its coastal supply price from ₦1,495,215 per metric tonne to ₦1,428,165 per metric tonne.
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According to the notice, the gantry loading price was adjusted downward from ₦1,175 per litre to ₦1,125 per litre, reflecting a decline in global energy prices following the easing of geopolitical tensions in the Middle East.
The latest reduction comes amid improving conditions in the international oil market after weeks of heightened uncertainty triggered by tensions in the Middle East, which had fuelled concerns over possible supply disruptions and driven crude oil prices higher. The recent de-escalation has, however, moderated global crude prices, creating room for refiners to lower the cost of petroleum products.
The development underscores the growing influence of the Dangote Refinery on Nigeria’s downstream petroleum market. Since commencing large-scale fuel supply operations, the refinery has emerged as a major supplier of petrol, with its pricing decisions increasingly shaping market trends and affecting the cost of imported fuel.
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Industry analysts say the latest cut could further intensify competition in the deregulated downstream sector by narrowing the price gap between locally refined and imported petrol. They also note that sustained reductions in ex-depot prices could help moderate transportation costs and ease inflationary pressures if the savings are passed on to consumers.
The latest adjustment follows a series of recent price reviews by the refinery, highlighting the increasing sensitivity of Nigeria’s fuel market to developments in the global crude oil market since the removal of petrol subsidies and the adoption of a market-driven pricing regime.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
