Relief as Dangote Refinery Reduces Petrol Price Again
- Dangote Refinery has reduced its petrol gantry price, a move widely anticipated by fuel marketers
- The new price by the refinery means it is now selling at lower prices compared to private depot rates
- Global crude oil pricing will continue to influence petrol pricing across the downstream market in Nigeria
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.
Dangote Petroleum Refinery has reduced its ex-depot petrol price to N1,250, a decision widely anticipated amid declining global crude oil prices.
The new price is a N25 per litre reduction from N1,275 per litre, as the refinery reclaims its position as the cheapest source of petrol for marketers.
Source: Getty Images
Dangote, marketers price competition
The new price from Dangote was confirmed on Friday, May 29, and the development is expected to cause an immediate impact on prices at private depots and along the fuel marketing chains.
Petroleumprice.ng reports that at various depots, depot prices have already started positioning ahead of the refinery price reduction announcement.
Many fuel marketers decided to delay purchases from depot operators and refiners this past week as they expected the prices to go down
On Friday, petrol at private depots was sold at N1, 272 at Aiteo and Nipco. In contrast, other depots, including integrated energy, Ascon Oil, and African Terminal, sold fuel at an estimated N1,274 per litre (lower than the previous Dangote ex-depot price of N1,275).
In the new week, the price is now expected to change at depots to stay competitive with Dangote.
Why petrol price is dropping?
The changes in petrol prices are due to the decline in crude oil prices internationally. Brent fell by 1.70% to $91.12 per barrel, while US West Texas Intermediate fell by 1.73% to $87.36 on Friday.
Industry stakeholders noted that if crude prices continued to fall, the recent downward move by Dangote Refinery could lead to further price drops at various private depots in the coming days and ease pressure on downstream costs.
Source: Getty Images
Since starting operation, Dangote refinery has become an increasingly influential player in Nigeria's fuel market, with its pricing decisions often shaping how much Nigerians pay for petrol at filling stations and depot pricing patterns.
Market analysts believe that the latest reduction reinforces Dangote Refinery's growing role in determining domestic petrol pricing, particularly as marketers and depot operators closely monitor its pricing strategy when making purchase decisions.
NNPC announces new petrol prices in Lagos, Abuja, other states
Earlier, Legit.ng reported that Nigerian National Petroleum Company Limited (NNPCL) retail outlets have reduced the cost of petrol.
The changes came just three days after the Dangote Refinery had reduced its petrol gantry price by N85 to N1,200 per litre from N1,285.
Checks showed that petrol in Lagos now selling at N1,255 per litre, down from N1,330, representing a reduction of N75. While in Abuja, NNPC reduced the price to N1,295 per litre from N1,361.
Source: Legit.ng
