Dangote Refinery Slashes Petrol Price by N100 as Global Oil Tensions Ease

The Dangote petrol price reduction was announced after crude oil prices dropped sharply amid signals that tensions in the Middle East may soon ease. The Dangote Petroleum Refinery on Tuesday reduced its ex-gantry petrol price by N100 per litre. The price was cut from N1,175 to N1,075 per litre. In addition, petrol supplied through coastal distribution will now sell at N1,050 per litre.

This adjustment came shortly after global oil prices fell from $110 per barrel to about $88 per barrel. The decline followed remarks by United States President Donald Trump, who said the ongoing war involving Iran could end soon. The refinery also lowered the price of diesel. The product was reduced by N190 per litre, bringing the new rate to N1,430 from the previous N1,620.

However, despite the refinery’s move, petrol prices at filling stations across Nigeria have not immediately dropped. Global tensions influence fuel prices

The latest changes were influenced by developments in the global oil market. Crude prices surged earlier due to fears of supply disruption from the Middle East conflict. Iran’s blockade of the Straits of Hormuz had earlier triggered concerns about reduced oil supply worldwide. As a result, oil prices had surged to around $110 per barrel, the highest level since July 2022.

Meanwhile, Trump suggested that the conflict could soon end. Speaking from his Doral resort in Miami, he described the war as a “little excursion.” He said the operation had succeeded “much faster than we thought.”

He added that his administration was focused on keeping oil prices low. However, Iranian authorities signaled a different position. Iran’s Foreign Minister Abbas Araghchi dismissed the possibility of talks with the United States.

“I don’t think talking with the Americans would be on our agenda anymore,” Araghchi said.

He added, “We are prepared, we have been prepared to continue attacking them with our missiles as long as needed and as long as it takes.”

Although the Dangote petrol price reduction has been announced, many marketers have not adjusted their pump prices. Checks in Abuja showed that several stations still sell petrol at high rates.

NNPC retail outlets continued dispensing fuel at around N1,285 per litre. Meanwhile, other stations such as AA Rano and AYM Shafa maintained prices around N1,330 per litre. Olajide Jeremiah, Chief Executive Officer of Petroleumprice.ng, explained that price adjustments may take some time.

 

“The news of change in crude oil price and gantry price of Dangote Petroleum Refinery came as a big surprise to the domestic market,” he said.

“Many depots and filling stations are still selling at the old price but there should be downward adjustments before weekend.” Nigerians feel economic pressure

Meanwhile, the recent fuel price increases have already affected transportation and daily life across Nigeria. In Lagos, petrol was sold between N1,150 and N1,250 per litre in many locations. Consequently, transport fares rose by nearly 30 percent in some areas.

Some commuters were forced to trek due to higher transport costs. Similarly, some car owners have reduced their fuel usage. Industry observers believe the oil market could remain unstable until the Middle East conflict ends.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, praised the refinery’s price cut.

“The refinery has taken the right step. Other operators in the downstream will follow as soon as they finished selling their stocks,” he said.

Meanwhile, Fitch Ratings warned that the conflict could place economic pressure on emerging markets. According to the agency, prolonged disruptions to oil supply could affect inflation, exchange rates, and government finances in many countries.