The Dangote Refinery has reduced its ex-gantry price of Premium Motor Spirit (PMS), popularly known as petrol, by N75 per litre, bringing the new loading price to N1,200 per litre amid a sharp decline in global crude oil prices.
The latest adjustment comes as international crude oil prices, including Nigeria’s Bonny Light, dropped to about $98 per barrel following growing optimism that tensions between the United States and Iran may soon ease.
Oil prices had surged above $110 per barrel earlier in the week at the peak of the conflict fears, prompting petroleum marketers across Nigeria to increase pump prices. However, despite the recent decline in crude prices, many depot owners and fuel marketers have yet to reduce their selling rates.
Reports indicate that several depots, including A.A. Rano, African Terminal, Aiteo, Ascon, and Bono, are still selling petrol at around N1,285 per litre, while some operators maintain even higher prices.
At retail stations, MRS filling stations were seen selling petrol at about N1,332 per litre in Lagos, while many independent marketers dispensed the product at N1,342 per litre and above depending on location. Other major marketers sold within the N1,320 to N1,325 range.
The drop in crude oil prices followed comments by U.S. President Donald Trump, who hinted that efforts were underway to end the U.S.-Iran conflict, raising hopes of stability in the global oil market.
According to Reuters, Brent crude futures fell by more than 3 percent to $98.06 per barrel, while U.S. West Texas Intermediate crude dropped to $91.93 per barrel amid expectations of a possible reopening of the Strait of Hormuz if peace talks succeed.
Industry stakeholders say the refusal of local depot operators to immediately adjust prices reflects supply limitations and market dominance by a few major suppliers.
The Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, explained that depot prices have not responded quickly to falling crude prices due to limited product supply across the country’s depots.
Similarly, the National President of the Oil and Gas Services Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, stated that since Nigeria now operates a deregulated petroleum market, domestic fuel prices are expected to adjust gradually if global crude oil prices continue to decline in the coming days.