Dangote Petroleum Refinery has reduced its petrol ex-gantry price by N75 per litre from N1,250 to N1,175 with effect from midnight on June 16, citing the de-escalation of geopolitical tensions in the Middle East and the resulting decline in international crude oil prices as the basis for the downward revision.
The refinery simultaneously reduced its coastal loading price by N100,575 per metric ton, bringing it down from N1,595,790 to N1,495,215 per metric ton, with outstanding unloaded gantry volumes to be repriced at the new rate from the effective date.
The pricing adjustment followed a significant reversal in global oil markets driven by growing optimism around a possible diplomatic resolution between the United States and Iran that could reopen the Strait of Hormuz shipping route. Crude prices had climbed over the preceding week on fears of supply disruption stemming from Iran-Israel-United States tensions, but retreated sharply as diplomatic signals improved and supply disruption concerns eased.
Industry participants said the refinery’s price cut was likely to trigger competitive responses across the downstream market as private depot operators and fuel marketers adjusted their own pricing to maintain volumes. Analysts said the direction of pump prices over the coming weeks would depend on the stability of global energy market conditions and how much of the cost reduction marketers passed through to consumers.
The adjustment also reinforced the Dangote refinery’s growing role as a price-setter in Nigeria’s domestic fuel market, with the 650,000 barrel-per-day facility increasingly functioning as the reference point around which competing suppliers calibrated their commercial decisions.
