The Dangote Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS) to ₦1,200 per litre, a significant ₦75 drop from its previous price of about ₦1,275 per litre, in a move expected to ease fuel cost pressures on Nigerians.
The price adjustment marks a sharp reversal from a recent increase by the refinery, which had been attributed to volatility in global oil markets. The latest reduction has already begun to stir reactions across Nigeria’s downstream petroleum sector, with stakeholders closely monitoring its potential impact on pump prices nationwide.
Industry analysts say the development underscores the sensitivity of domestic fuel pricing to fluctuations in international crude oil benchmarks. The downward review follows a notable decline in global oil prices, with Brent crude falling to $95.05 per barrel—representing a drop of about 13 percent—while West Texas Intermediate (WTI) crude dipped to $97.18 per barrel, nearly a 14 percent decrease.
According to energy experts, the easing of crude prices has reduced input costs for refiners, enabling the Dangote facility to implement the ₦75 price cut within days of its earlier hike.
Market watchers have linked the sudden drop in global oil prices to geopolitical developments involving former U.S. President Donald Trump. Reports suggest that Trump announced a conditional two-week ceasefire arrangement with Iran, a move that helped calm fears of imminent supply disruptions in the global oil market.
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The development highlights how geopolitical shifts continue to influence oil pricing dynamics, with direct implications for local fuel markets such as Nigeria’s.
Stakeholders in the downstream sector say while the reduction is a positive signal, sustained relief for consumers will depend on continued stability in global crude prices and consistent supply dynamics within the domestic market.
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