Despite a ₦100 reduction in the ex-depot price of petrol by Dangote Petroleum Refinery, industry operators say Nigerians may not experience an immediate drop in pump prices due to persistent downstream costs and global market pressures.
The refinery lowered the gantry price of Premium Motor Spirit (PMS) to ₦1,075 per litre from ₦1,175, while the coastal supply price was reduced to ₦1,050 per litre. Diesel prices were also cut by ₦190, dropping from ₦1,620 to ₦1,430 per litre, following a decline in global crude prices.
However, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) warned that distribution costs, taxes, and foreign exchange fluctuations could limit the impact of the reduction at filling stations. PETROAN president Billy Gillis-Harry said global supply disruptions and shipping challenges continue to influence domestic fuel pricing.
The adjustment comes amid volatility in international oil markets, with Brent crude falling sharply before rebounding due to geopolitical tensions and supply concerns. Industry analysts say marketers may adopt a cautious approach before passing any price reduction to consumers.
Meanwhile, rising tensions in the Middle East have heightened uncertainty in global energy markets. Donald Trump warned that the United States would respond strongly if Iran attempts to disrupt oil supplies in the region, adding further pressure to an already unstable global oil market.
