Dangote Refinery has rolled back its recent hike in fuel prices, reducing the ex-gantry cost of Premium Motor Spirit (PMS) by N75 to N1,200 per litre, according to industry insiders on Wednesday.
This adjustment comes shortly after the refinery increased petrol prices to around N1,275 per litre, attributing the rise to instability in the global oil market that pushed up production and supply costs.
The latest reduction is linked to a significant drop in global crude oil prices. Brent crude futures declined to $95.05 per barrel, representing a 13 per cent decrease, while West Texas Intermediate (WTI) crude closed at $97.18, falling by nearly 14 per cent.
Experts say the downturn in oil prices is largely driven by geopolitical shifts in the Middle East, especially a conditional two-week ceasefire agreement between the United States and Iran, which has reduced fears of supply disruptions.
Fuel marketers and commuters in major cities have reacted positively to the development, expressing hope that the lower price will help ease the burden of rising living costs amid ongoing inflation.
Observers within the energy sector believe the refinery’s price cut could have a ripple effect on retail petrol prices across the country, particularly if the global decline in crude oil prices continues.
Analysts also point out that the situation highlights Nigeria’s increasing sensitivity to international oil price movements, despite improvements in domestic refining capacity.
The Dangote Refinery, which commenced operations in 2023, was anticipated to cut down Nigeria’s dependence on fuel imports.
Nonetheless, its pricing strategy still aligns closely with international oil benchmarks like Brent and WTI crude futures.