Dangote refinery cuts petrol price again to N820 per litre

The Dangote oil refinery has reduced the price of petrol from N840 to N820 per litre, marking the second price cut within a week. The N20 reduction came one week after the refinery dropped the price of the fuel from N880 to N840.

This adds up to a N60 (6.82 per cent) cut in petrol prices by the Dangote refinery within a week, providing slight relief to Nigerian motorists who have faced rising fuel costs in recent months.

According to The Punch, Anthony Chiejina, Dangote Group’s spokesman, said that the company reduced the price to make the product more affordable for Nigerians. “We have reduced petrol gantry price to N820 from N840 per litre,” he stated, noting that the price slash took effect from Tuesday.

The recent price reductions come after a period of significant increases. Recall that Dangote, NNPC and other major fuel distributors in Nigeria hiked petrol prices less than three weeks ago, blaming this on the rise in crude oil prices in the international market as occasioned by the conflict between Israel and Iran.

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During that period, the pump prices of petrol hovered between N915 and N955 at the pumps, then, depending on the location. It was below N900 before the sudden hike. During the price hike, marketers stated that the product sold at N960 and N980 in the far north because of the distance.

The recent price cuts are directly linked to developments in global oil markets. However, as crude prices fell below $70 last week, the pump prices of PMS also declined. Crude prices had crashed because Israel and Iran stopped bombing each other, alleviating fears of a supply disruption in the Middle East.

When international crude oil prices rise, Nigerian fuel prices typically follow suit because the country imports most of its refined petroleum products. Conversely, when global prices fall, local prices often decrease as well, though the changes may take time to reach consumers at filling stations.

The conflict between Israel and Iran had raised concerns about potential disruptions to oil supplies from the Middle East, which pushed up global crude prices. As tensions eased and the immediate threat of supply disruption reduced, international oil prices dropped, creating space for Nigerian fuel marketers to lower their prices.

As of Tuesday, many filling stations sold petrol below N900 per litre in Lagos and Ogun States.