Dangote Refinery has cut the ex-gantry cost of Premium Motor Spirit by N75 to N1,200 per litre, after recently hinting at a possible increase in depot petrol prices to around N1,350 per litre. In a letter signed by management, the company said prices remained at N1,275 per litre, even as sources familiar with the situation said the 650,000-barrel-per-day refinery had reduced the ex-gantry price again.
The move fed through to retail pumps in Abuja on Thursday, where NIPCO, Eterna and Mobil stations lowered their petrol prices to N1,350 per litre from between N1,365 and N1,370 per litre, a cut of N15 to N20 per litre. Chinedu Ukadike described the reduction as a competitive move to attract patronage, saying companies sometimes have to absorb some cost when sales are weak so they can protect returns on investment.
The price change landed against a volatile crude backdrop. As of 10:04 a.m., Brent crude was trading at $100 per barrel and West Texas Intermediate stood at $94.32 per barrel. On Thursday, both benchmarks fell by nearly 3 percent to $99 and $93 per barrel, respectively, adding another layer of pressure to a market already being driven by shifting fuel costs.
Dangote’s latest cut comes after a run of price fluctuations that has kept Nigeria petrol price drop conversations moving from the refinery floor to retail forecourts. Domestic petrol prices have remained sensitive as the Middle East crisis has stretched beyond two months of escalation, and the refinery had already been linked to a possible increase before this new reduction was reported.
What matters now is whether the lower ex-gantry rate holds long enough to steady retail pricing, or whether the next adjustment arrives just as quickly as the last one.
