Dangote Petroleum Refinery has reduced its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, by N50 per litre, from N1,175 to N1,125, effective Thursday, June 25, 2024. The company also lowered its coastal supply price from N1,495,215 per metric tonne to N1,428,165 per metric tonne. This adjustment reflects the ongoing decline in global crude oil prices, which have fallen to levels not seen since before the Iran conflict.
Crude Oil Drops Below $73 Amid Easing Middle East Tensions
The price cut comes as Brent crude, the global benchmark, briefly dipped below $72.48 per barrel, matching the level recorded before the US and Israel launched strikes on Iran on February 28. It later recovered slightly to trade around $72.63. According to the BBC, energy markets experienced significant volatility after Iran’s response to the attacks disrupted movement through the Strait of Hormuz, a major route for global oil and gas supplies. However, crude prices have continued to decline following the US and Iran’s agreement on a Memorandum of Understanding (MOU) on June 17, which established a 60-day negotiation period focused on Tehran’s nuclear programme and efforts to resolve the conflict.
Dangote Refinery Responds to Global Energy Dynamics
According to a statement from Dangote Refinery’s management, the reduction is in response to the de-escalation of tensions in the Middle East, which has resulted in falling global energy prices and eased upward pressure on crude oil markets. The company also issued directives to reprice all outstanding un-offloaded gantry volumes to the new price list. Industry watchers now expect depot owners and petroleum marketers to respond to the new Dangote Refinery rate, fostering greater competition and potentially alleviating financial pressures on consumers grappling with high transportation and operational expenses.
Current Depot Prices Across Nigeria
As of Wednesday, the latest prices at various depots included: Masters at N1,186, Matrix at N1,197, Sigmund at N1,184, T.S.L at N1,181, A.Y.M Shafa at N1,183, Nepal at N1,182, Parker at N1,183, Prudent at N1,185, Rain Oil at N1,185, A.A Rano at N1,160, African Terminal at N1,160, Aiteo at N1,159, Bono at N1,160, Emadeb at N1,160, Integrated at N1,160, Mao at N1,160, MRS at N1,160, and Pinnacle at N1,172.
Aviation Fuel Price Also Reduced
In a related development, Dangote Refinery has also reduced the price of Aviation Turbine Kerosene (ATK), commonly known as jet fuel, by N100 per litre, from N1,550 to N1,450, representing a 6.5 per cent decline. This adjustment reflects recent movements in crude oil prices and improving global supply conditions. The development comes at a time when airlines are grappling with high operational expenses, with jet fuel remaining one of the biggest cost drivers in the aviation sector.
Impact on Nigerian Consumers and Economy
Experts predict that further drops in crude prices could lead to similar cuts in Nigeria’s downstream market as marketers reprice their products according to the new refinery rate. Since commencing operations, the Dangote Refinery has established itself as a key player in the Nigerian energy sector. Nigerians await possible pump price relief as the refinery continues to adjust prices in line with global trends.
