The Dangote Petroleum Refinery has announced another reduction in its petrol loading price, citing the continued decline in global crude oil prices and intensifying competition in Nigeria’s deregulated downstream petroleum sector.
Market checks confirmed the latest adjustment, which industry observers say reflects changing dynamics in the international oil market and growing competition among fuel suppliers across the country.
An official of the refinery, who confirmed the development, explained that the price review was driven by the sustained drop in crude oil prices, the refinery’s primary feedstock.
“It is true that we have adjusted the gantry price of petrol due to the reduction in crude oil prices, which is our major feedstock. In a deregulated market, such adjustments should be expected,” the official said.
The source added that the refinery would continue to monitor market conditions and adjust prices accordingly.
“We are still monitoring developments and will continue to adjust prices in line with market realities,” the official stated.
Despite the reduction at the refinery level, investigations revealed that many filling stations across the country have yet to reflect the new pricing structure, with petrol still selling above N1,350 per litre in several locations depending on marketers and regional distribution costs.
The latest price cut comes as Nigeria’s downstream petroleum market continues to witness increased competition following the full implementation of deregulation policies and fluctuations in global crude oil prices.
Meanwhile, the Dangote Refinery has also highlighted its growing contribution to Nigeria’s economic recovery, following the recent upgrade of the country’s sovereign credit rating by S&P Global Ratings.
According to the company, S&P raised Nigeria’s long-term foreign and local currency sovereign credit ratings from “B-” to “B”, citing stronger economic growth, improved external balances, higher oil production, and expanded domestic refining capacity as key factors behind the positive outlook.
The refinery noted that S&P specifically identified the operational ramp-up of the 650,000 barrels-per-day Dangote Petroleum Refinery and Petrochemicals complex as a major contributor to Nigeria’s improving balance of payments position and broader economic resilience.
“Significant refining capacity is now also online; Dangote Industries Ltd.’s large-scale refinery and petrochemical complex has ramped up to near its maximum capacity of 650,000 barrels per day,” the company stated.