The Dangote Petroleum Refinery & Petrochemicals has reduced the ex-gantry price of Premium Motor Spirit (PMS) to ₦1,200 per litre, reversing an earlier increase. The adjustment follows a sharp drop in global crude oil prices triggered by easing geopolitical tensions in the Middle East.
The new price is ₦75, a reduction from the previous price, ₦1,275 per litre. The earlier response was the rising international oil prices and concerns over supply disruptions. A refinery official explained that the initial hike reflected global benchmarks and market realities, noting that tensions in the Middle East had pushed crude higher.
On Tuesday night, the official confirmed that petrol had been reviewed upward by ₦75, while diesel rose more significantly by ₦200 to ₦1,950 per litre. He stressed that these changes were consistent with international market movements. However, by Wednesday morning, the refinery reversed its decision after crude prices fell sharply.
The reversal came after U.S. President Donald Trump announced a conditional two-week ceasefire arrangement with Iran, easing fears of supply disruptions through the Strait of Hormuz. Brent crude dropped by 13.28 percent to $94.76 per barrel, while U.S. West Texas Intermediate fell by 14.72 percent to $96.31 per barrel. The decline reflected signals of de-escalation in tensions involving Iran, the United States, and Israel.
“Yes, the price has been reversed. This follows the current price of crude oil,” the refinery official said in a telephone interview.
Confirming the development, the refinery issued a statement clarifying that there had been no fresh increase in petrol prices, contrary to speculation. It stressed that the company had adjusted its price. A source at the refinery added that the gantry price now stands at ₦1,200 per litre, while the coastal price is ₦1,153 per litre. “We are maintaining our existing price and have not implemented any new pricing for our customers,” the statement read.
The refinery assured that it remains committed to ensuring a steady supply across domestic and regional markets. The adjustment comes as Nigeria’s downstream petroleum sector continues to face volatility driven by the global oil market, foreign exchange fluctuations, and supply chain challenges.
Since commencing operations in September 2024, the Dangote Refinery has become a dominant player in Nigeria’s fuel market. Its pricing decisions now significantly influence supply and distribution patterns in the country. Analysts note that the refinery’s responsiveness to global price movements highlights Nigeria’s growing integration into international market dynamics, particularly following the deregulation of the downstream sector.
The latest price cut underscores the impact of geopolitical developments on domestic fuel costs. With crude oil prices tied to global events, Nigeria’s fuel market remains vulnerable to external shocks. The Dangote Refinery’s swift adjustment reflects both the volatility of the international market and the importance of aligning local pricing with global benchmarks.
As the refinery continues to shape Nigeria’s energy landscape, its decisions will remain central to stabilising supply and managing the effects of global oil price fluctuations on the domestic economy.
