Dangote Reduces Petrol Price As Crude Oil Falls to Levels Not Seen Since Before Iran War
- Dangote Petroleum Refinery has lowered its petrol prices by N50 as global crude oil costs continue their decline
- The latest price cut shows the refinery effort to reflect prevailing global energy dynamics on domestic pump prices
- Industry watchers now expect depot owners and petroleum marketers to respond to the new Dangote Refinery rate
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery, in a notice on Thursday, June 25, 2024, adjusted its ex-depot price for Premium Motor Spirit (PMS), also known as petrol, down from N1,175 to N1,125 per litre.
The company also announced a reduction in its coastal supply price from N1,495,215 per metric tonne to N1,428,165 per metric tonne.
Source: UGC
Petrolueprice.ng reports that the new price cut takes effect on Thursday, June 25, 2024, with directives to repricing all outstanding un-offloaded gantry volumes to the new price list.
The reduction, according to Dangote Refinery’s management, is in response to the de-escalation of tensions in the Middle East, which has resulted in falling global energy prices and eased upward pressure on crude oil markets.
Oil Prices dip
This development comes as oil prices have dropped to their lowest level since before the Iran conflict, as shipping activity through the strategic Strait of Hormuz gradually returns to normal.
Brent crude, the global benchmark, briefly declined below $72.48 per barrel, matching the level recorded before the US and Israel launched strikes on Iran on February 28. It later recovered slightly to trade around $72.63.
BBC reports that Energy markets experienced significant volatility after Iran’s response to the attacks disrupted movement through the Strait of Hormuz, a major route for global oil and gas supplies.
Crude prices have continued to decline following the US and Iran’s agreement on a Memorandum of Understanding (MOU) on June 17, which established a 60-day negotiation period focused on Tehran’s nuclear programme and efforts to resolve the conflict.
Experts predict that further drops in crude prices could lead to similar cuts in Nigeria’s downstream market as marketers reprice their products according to the new refinery rate.
Since commencing operations, the Dangote Refinery has established itself as a key player.
Source: Getty Images
Here is the most recent price at depots on Wednesday
- Masters: N1,186
- Matrix: N1,197
- Sigmund: N1,184
- T.S.L: N1,181
- A.Y.M Shafa: N1,183
- Matrix: N1,187
- Nepal: N1,182
- Parker: N1,183
- Prudent: N1,185
- Rain Oil: N1,185
- A.A Rano: N1,160
- African Terminal: N1,160
- Aiteo: N1,159
- Bono: N1,160
- Emadeb: N1,160
- Integrated: N1,160
- Mao: N1,160
- MRS: N1,160
- Pinnacle: N1,172
Aviation fuel price drops in Nigeria
Earlier, Legit.ng reported that Dangote Refinery has also reduced the price of Aviation Turbine Kerosene (ATK), commonly known as jet fuel, in a move that could ease pressure on airline operating costs in Nigeria.
Market data showed that jet fuel price was cut by N100 per litre, from N1,550 to N1,450, representing a 6.5 per cent decline. The adjustment reflects recent movements in crude oil prices and improving global supply conditions.
The development comes at a time when airlines are grappling with high operational expenses, with jet fuel remaining one of the biggest cost drivers in the aviation sector.
Source: Legit.ng
