Refinery says the reduction reflects falling crude prices, but marketers warn pump prices could still climb toward ₦1,500 amid Middle East tensions…..
Nigeria’s largest refinery, the Dangote Refinery, has announced a fresh reduction in the price of petrol and diesel, offering a slight relief to fuel marketers and consumers after several weeks of steep increases.
The refinery confirmed on Tuesday that the ex-gantry price of Premium Motor Spirit (PMS) has been reduced by ₦100, dropping from ₦1,175 per litre to ₦1,075 per litre.
The development was confirmed by the company’s Chief Communications Officer, Anthony Chiejina.
Under the new pricing structure, petrol supplied through coastal distribution channels will now sell at roughly ₦1,050 per litre, depending on logistics and delivery arrangements.
In addition to petrol, the refinery also announced a significant reduction in diesel prices, cutting the cost from ₦1,620 per litre to ₦1,430 per litre, representing a ₦190 decrease.
According to the company, the price adjustment reflects the recent dip in global crude oil prices.
The refinery explained that its pricing model is directly tied to international oil benchmarks rather than government subsidies or artificial price controls.
“All our crude is purchased at the global benchmark price with an additional premium of between $3 and $6,” the company said in a statement.
It further clarified that all foreign exchange used in its operations is obtained at the prevailing market rate, stressing that neither crude purchases nor forex transactions are subsidised.
The company also addressed questions surrounding the naira-for-crude arrangement, explaining that even under the agreement, crude oil supplied to the refinery is still priced according to global benchmarks before being converted to naira using the current exchange rate.
“As responsible corporate citizens operating under strict governance and ethical standards, it is important for us to adjust prices when global crude prices decline,” the statement added.
The latest price reduction comes after a turbulent period for fuel prices in Nigeria.
Just a day earlier, the refinery had increased its petrol price to ₦1,175 per litre, following previous adjustments that pushed the cost from ₦874 per litre on March 2 to ₦995 per litre on March 7.
Despite the current reduction, market analysts say fuel prices remain highly sensitive to international developments.
The volatility in the oil market has largely been linked to escalating tensions in the Middle East involving the United States, Iran, and Israel.
Speaking on the conflict, U.S. President Donald Trump suggested that military operations were progressing faster than expected.
“I think the war is very complete, pretty much,” Trump said during a phone interview with CBS News. “They have no navy, no communications, and they’ve got no air force. If you look at it, there’s nothing left in a military sense.”
He added that the conflict could end sooner than the four-to-five-week timeline initially anticipated.
Trump also warned that any attempt by Iran to disrupt oil shipments through the Strait of Hormuz, a critical global oil transit route responsible for about one-fifth of the world’s crude supply, would trigger a massive military response.
The geopolitical uncertainty had earlier pushed crude oil prices higher, contributing to the surge in petrol prices in Nigeria.
However, crude prices dropped to about $90 per barrel on Tuesday, marking the first significant decline since the crisis began.
Despite the temporary relief, industry stakeholders say Nigerians should still prepare for further increases in petrol prices.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, warned that pump prices could eventually rise to around ₦1,500 per litre.
Speaking on Channels Television’s The Morning Brief, Gillis-Harry said that while the refinery’s price reduction is positive, additional costs such as logistics, transportation, and distribution margins would likely push retail prices higher.
“The volatility we are seeing in the market suggests that ₦1,500 per litre is not unrealistic,” he said.
According to him, the most critical issue at the moment is product availability, not necessarily the price.
“The Dangote refinery is the salvation for us because it guarantees a steady supply of products,” he said. “Even if prices are higher, it is still better than experiencing fuel scarcity.”
Gillis-Harry noted that with global tensions still unresolved, Nigerians should expect continued fluctuations in fuel prices in the coming weeks.
Still, the refinery has reiterated its commitment to supporting Nigeria’s energy security and ensuring a steady supply of refined petroleum products to the domestic market.
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