Petrol Price Falls at Private Depots Below Dangote Refinery's Rate
- Private fuel depots have adjusted petrol prices across Nigeria as crude oil prices drop
- Most depots are now selling petrol at prices slightly below Dangote Refinery’s gantry rate
- Filling station owners and bulk buyers will now choose between private depots and Dangote Refinery to buy
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Prices for petrol and diesel are now being sold below the Dangote Refinery gantry price by depots nationwide after global crude prices experienced a plunge driven by relaxation of the tension around the Strait of Hormuz and ongoing negotiations between the United States and Iran.
Source: Getty Images
PetroleumPrice.ng reports that on Monday, May 25, some Lagos depots have made adjustments on petrol, to below Dangote refinery's gantry price of N1,275 per litre.
One of the depots, Ardova Petroleum, reduced its price of PMS to N1,275 per litre, while Nipco and Aiteo had further reduced PMS prices to N1,274 per litre from their previous price of N1,280 on average.
The development in the petrol market also moved into the diesel market.
In Warri, prices for Automotive Gas Oil (AGO) were revised downward to N1,798 per litre by Rainoil and Danmarna below market benchmark prices.
Source: Getty Images
Oil price drops
The price reduction comes following the recent slide in international crude oil prices, fueled by a potential diplomatic solution to the United States-Iran negotiations that would ensure stable flows of supply out of the Middle East.
As at 5 pm WAT on Monday, Brent crude traded at $97.62per barrel, down 5.72 while West Texas Intermediate, WTI, stood at $91.08per barrel, down 5.71%.
Industry experts explained that depot operators were reacting to declining global crude prices and the anticipation of decreased replacement costs of imported petroleum products.
Trump talks with Iran
Punch reports that US President Donald Trump had on Saturday said the Strait of Hormuz would be reopened as part of a proposed agreement involving the United States, Iran, and several Middle Eastern countries amid efforts to end the ongoing Iran conflict.
Trump disclosed this in a post on the Truth Social platform after a series of calls with leaders of Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Türkiye, Egypt, Jordan, Bahrain, and Israel.
According to him, an agreement had been negotiated, subject to finalisation between the United States, Iran, and several other countries.
The American leader added that final aspects and details of the deal were still being discussed and would be announced shortly.
Good news as diesel price drops
Earlier, Legit.ng reported that the National Bureau of Statistics has announced that the average retail price paid by consumers for Automotive Gas Oil (Diesel) stood at N1,361.57 per litre.
This represents a 9.32% decrease compared with N1,501.58 in the previous month.
Based on state-level analysis, Lagos recorded the highest average retail price of diesel at N1,560.82, followed by Akwa Ibom (N1,558.52) and Borno (N1,480.00).
Source: Legit.ng
