Dangote Refinery slashes petrol price by N50 as crude oil costs fall
By Aboki Forex —
Dangote Petroleum Refinery has cut its petrol price by N50 per litre. The new ex-depot price for Premium Motor Spirit (PMS) is now N1,125, down from N1,175 per litre.
The refinery also reduced its coastal supply price from N1,495,215 per metric tonne to N1,428,165 per metric tonne. The new prices took effect on Thursday, June 25, 2024.
Dangote Refinery management said the reduction is due to falling global crude oil prices. The de-escalation of tensions in the Middle East has eased pressure on energy markets.
Oil prices have dropped to their lowest level since before the Iran conflict. Shipping activity through the Strait of Hormuz is gradually returning to normal. Brent crude briefly fell below $72.48 per barrel before recovering slightly to $72.63.
The price cut follows an agreement between the US and Iran on June 17. Both countries signed a Memorandum of Understanding for a 60-day negotiation period focused on Iran's nuclear programme.
Industry watchers expect depot owners and petroleum marketers to respond to the new Dangote Refinery rate. Experts predict further drops in crude prices could lead to more cuts in Nigeria's downstream market.