The Dangote Petroleum Refinery has dropped its petrol gantry price by N25 per litre, from N1,275 to N1,250.
A top official of the Dangote Group, who did not want to be named because he was not authorised to speak on the matter, confirmed the development to our correspondent on Saturday.
The official said the price reduction was in tandem with the current drop in oil prices in the international market.
The PUNCH had earlier predicted that petrol prices might fall in Nigeria following the ongoing negotiations between the United States and Iran to reopen the Strait of Hormuz.
Speculation among oil traders crashed oil prices from around $111 per barrel in the previous week to $91 as of Saturday. According to the Dangote official, oil prices are still volatile and require caution.
“We have reduced the petrol price to N1,250 at our gantry. This has to do with the current reduction in global oil prices, though everything is still volatile and requires caution,” he said.
Petroleumprice.ng reports that depot prices were already responding to shifting supply dynamics, saying Aiteo and NIPCO were selling at N1,272 per litre, while Integrated, Ascon, and African Terminal traded at around N1,274 per litre, below Dangote’s previous gantry price of N1,275 per litre.
Recall that crude oil, the major input for fuel production, rose from below $70 after the US-Iran war began on February 28. In about three months of the conflict, crude traded above $100 and climbed beyond $115 at some points, leading to a sharp rise in fuel prices globally.
In Nigeria, petrol prices increased from N830 per litre to the current N1,300. Diesel and aviation fuel prices also rose sharply, with airline operators threatening to suspend operations.
As crude prices continued their downward trend in recent days, traders expressed hope that the Dangote refinery might consider reducing petrol prices.
There were reports that the US and Iran had agreed in principle to a deal aimed at winding down the conflict in the Middle East by reopening the Strait of Hormuz.
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