Relief As Dangote Announces New Petrol Price, Reverses N75 Increase
- In a quick turnaround, the Dangote refinery has decided to reverse its ex-gantry petrol price
- The previous price increase was in response to rising crude oil prices in the global market
- The new adjustment follows Donald Trump’s announcement of a conditional two-week ceasefire with Iran
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of Nigeria’s economy, stocks, and market trends.
The Dangote Petroleum Refinery on Wednesday, April 8, slashed its ex-gantry petrol price to N1,200 per litre from N1,275 per litre announced earlier on Tuesday, April 7.
The new price is a rollback from Tuesday's increase, which raised petrol prices by N75 per litre, representing about a 5.02% jump, as the refinery responded to global oil market changes.
Source: Getty Images
The refinery also raised Automotive Gas Oil (AGO), commonly known as diesel prices, by N200 to N1,950 per litre from N1,750, Petroleumprice.ng reports.
There are also indications that diesel may see a price reduction, although this has not yet been officially confirmed.
Industry sources say the latest Dangote reduction in ex-depot petrol prices is not expected to make a significant difference, as the increase lasted only a few hours.
Global oil prices drive reversal
The latest price cut comes after a sharp drop in international crude oil prices to below $100 per barrel.
Brent crude fell to $95.05 per barrel, down about 13%, while West Texas Intermediate (WTI) settled at $97.18, reflecting a nearly 14% decline.
Analysts attribute the decline in crude oil prices to easing geopolitical tensions after former US President Donald Trump announced a conditional two-week ceasefire involving Iran, reducing fears of supply disruptions.
Iran agreed to reopen the Strait of Hormuz, a vital route for 20% of the world’s energy supply, for two weeks in exchange for a temporary ceasefire with the United States.
Read also
Marketers release new petrol depot prices, Dangote Says NNPC sold crude in dollars in March
The agreement buys time for the two sides to come to a more comprehensive agreement to put an end to the six-week conflict, which has resulted in thousands of deaths and a worldwide energy crisis.
Source: Getty Images
Pressure on consumers and businesses
Punch reports that a senior official at the refinery said pricing decisions were influenced by global crude benchmarks and prevailing market conditions.
The official said:
“The adjustment of prices is in line with global market trends. External factors, including tensions in the Middle East, directly impact refined product pricing."
Dangote partners with Marketers
Legit.ng earlier reported that the Dangote Refinery has partnered with major fuel marketers to improve nationwide fuel supply and reduce risks linked to relying on a single source, the Major Energies Marketers Association of Nigeria (MEMAN) has said.
The disclosure was made by MEMAN Chairman, Hubb Stokman, during a webinar hosted by the association.
According to Stokman, the arrangement is designed to enhance efficiency in the downstream sector while addressing concerns about concentration risk.
He explained that although Nigeria now has a refinery capable of meeting most domestic fuel demand, dependence on one facility could pose challenges.
Source: Legit.ng
