Dangote Refinery Suspends Petrol Price Hike as Depot Prices Crash Amid Falling Crude Oil
- Dangote Refinery suspends planned petrol price hike, restoring previous rate of ₦1,275 per litre
- Market stability improves as crude oil prices decline sharply, buoying expectations in the petroleum sector
- Refinery reaffirms commitment to price stability, alleviating consumer concerns amid economic pressures
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
There is fresh relief in Nigeria’s downstream petroleum sector after the Dangote Refinery suspended its planned increase in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol.
The refinery had earlier moved to raise its gantry loading price by ₦75 per litre, triggering concerns among marketers and consumers over the possibility of another nationwide fuel price increase.
Source: UGC
However, industry sources confirmed that the adjustment was later withdrawn, with the ex-depot rate returning to ₦1,275 per litre.
According to market insiders who spoke to Petroleumprice.ng, the reversal came shortly after the increase was announced, effectively restoring the previous pricing structure and calming growing anxiety across the downstream market.
Marketers react as market tension eases
The brief announcement of a higher gantry price had already sparked reactions among depot owners and fuel marketers, many of whom began adjusting their positions in anticipation of a fresh pricing cycle.
Industry operators noted that the sudden reversal has now eased pressure within the supply chain, helping to stabilise sentiment among traders and distributors.
The decision is also expected to slow down immediate price adjustments at filling stations, especially as marketers monitor developments in the international crude oil market.
Several operators said the move helped prevent panic buying and speculative pricing that could have worsened fuel costs across major cities.
Investigation shows that petrol depot prices remained at an average of N1,285 per litre.
Crude oil prices fall sharply
The refinery’s decision coincides with a significant drop in global crude oil prices, which has reshaped expectations within the petroleum market.
As of 10:47 a.m. (WAT), Brent crude traded at $101.7 per barrel, while West Texas Intermediate (WTI) stood at $94.11 per barrel.
Both crude benchmarks recorded steep declines, with Brent falling by 7.48 per cent and WTI shedding 7.98 per cent.
Analysts believe the sharp decline in crude prices influenced the refinery’s latest pricing decision, as operators seek to avoid market instability amid fluctuating international energy costs.
Outlook for petrol prices
Despite the temporary uncertainty created by the planned increase, industry players say the latest development could provide short-term stability in the downstream sector.
Marketers are expected to continue monitoring global oil prices, exchange rate movements, and supply conditions before making further pricing decisions.
For consumers already grappling with high transportation and living costs, the suspension of the petrol price hike may offer a brief respite from mounting economic pressure.
Dangote Refinery refutes price hike
Meanwhile, the mega refinery has denied that it increased the PMS price, stating that its ex-gantry rate remains at N1,275 per litre.
In a statement posted on its X handle, the refinery’s management revealed that by sustaining the current pricing structure, it is reaffirming its commitment to supporting stability in the domestic energy market.
Source: Getty Images
It revealed that it is cushioning the wider economy against external shocks.
New petrol prices emerge at NNPC filling stations
Legit.ng earlier reported that the Nigerian National Petroleum Company (NNPC) has adjusted petrol pump prices across its retail outlets nationwide, with Lagos new rates rising from N1,230 to N1,320 per litre.
In Abuja, the petrol price stood at N1,364, while Adamawa, Borno, and Yobe recorded some of the highest prices, compared to the relatively lower rates in parts of the South-West.
The latest pricing reflects ongoing fluctuations in Nigeria’s downstream petroleum market, influenced by changes in the global oil market.
Source: Legit.ng
