Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (petrol) by N75 per litre, making a fresh adjustment in the downstream petroleum market. The latest price review is expected to impact fuel distribution costs and could influence pump prices across various parts of the country. Industry stakeholders believe the reduction may foster greater competition among marketers while offering some relief to consumers burdened by rising transportation and living expenses.
The development comes amid efforts to ensure a stable supply of petroleum products and improve market efficiency within Nigeria’s energy sector. The refinery said the new gantry price is now N1,175 per litre, down from N1,250 per litre. It also reduced the coastal price per metric tonne from N1,595,790 to N1,495,215. According to the circular, the new prices will take effect from midnight.
The latest price reduction comes as tensions in the global oil market continue to ease following reports of ongoing talks between the United States and Iran over the reopening of the Strait of Hormuz. Oil prices had risen to about $83 per barrel on Monday after US President Donald Trump announced the signing of the agreement.
Crude oil, which is the main raw material used in fuel production, had increased sharply after hostilities broke out between the United States and Iran on February 28. During the three-month conflict, crude prices climbed above $120 per barrel, leading to higher fuel prices.
In Nigeria, petrol prices increased from around N830 per litre to about N1,300 per litre during the period. Diesel and aviation fuel prices also recorded major increases. With crude oil prices now falling, the reduction announced by Dangote Refinery is expected to provide more relief for consumers through lower fuel prices.
