By Abubakar Yunusa
The Dangote Refinery has reduced the prices of petrol and diesel, raising hopes of relief for Nigerians grappling with high fuel costs.
The refinery on Tuesday announced a ₦100 reduction in the gantry price of petrol, bringing the cost down to ₦1,075 per litre from the previous ₦1,175.
According to the refinery’s latest pricing template released today, petrol supplied through coastal channels will sell for ₦1,050 per litre due to maritime distribution expenses.
Diesel price was also slashed significantly. The product now sells for ₦1,430 per litre at the gantry, representing a ₦190 reduction from the earlier price of ₦1,620 per litre.
The refinery, however, clarified that the gantry prices do not include regulatory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The development followed a sharp decline in global oil prices, which dropped below $90 per barrel on Tuesday after tensions between the United States and Iran showed signs of easing.
Earlier, oil prices had surged above $100 per barrel amid fears that the conflict could disrupt supply through the strategic Strait of Hormuz, a key global energy transit route.
Industry operators say the easing geopolitical tension could influence fuel prices in Nigeria.
The President of the Petroleum Retail Owners Association of Nigeria, Billy Gillis-Harry, said the de-escalation of the conflict could have a direct impact on fuel pricing.
“There’s the trading and distribution aspect of the refining, and if the war de-escalates, it will impact pricing,” Gillis-Harry said.
He added that increased local refining capacity was also helping to cushion the effect of volatile global oil prices on Nigerians.
Similarly, the Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, said the fall in global crude prices should translate into lower fuel prices locally.
“We expect the prices to gradually begin to go down further with the same push that the prices were raised over the past few days to lessen the burden on the people,” Rewane said.
Fuel prices had earlier surged across the country, with petrol selling above ₦1,300 per litre in several locations, while diesel climbed to about ₦1,700.
The price hikes triggered higher transport fares and worsened the cost of living for millions of Nigerians.
Market watchers say the latest price cut by Dangote Refinery could signal further reductions if global crude prices continue to fall.
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