The Dangote Petroleum Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by ₦100, bringing the new price to ₦1,075 per litre.
The announcement was made on Tuesday by the company’s Chief Communications Officer, Anthony Chiejina, during a telephone conversation with Channels Television.
According to him, petrol supplied through coastal distribution channels will now cost ₦1,050 per litre.
The refinery also announced a reduction in the price of diesel. The product now sells for ₦1,430 per litre, representing a ₦190 decrease from the previous price of ₦1,620 per litre.
In a statement, the refinery explained that under the new pricing structure, the gantry price of petrol dropped from ₦1,175 to ₦1,075 per litre, while the coastal distribution price declined from ₦1,150 to ₦1,028 per litre.
The company said the adjustment reflects changes in global crude oil prices.
“As responsible corporate operators working under strict governance and ethical standards, we consider it necessary to lower the price of our products to reflect the recent decline in global crude oil prices,” the statement noted.
The refinery also clarified that all crude oil purchased is based on international benchmark prices with an additional premium ranging between $3 and $6. Payments for foreign exchange are made using the prevailing market rate, and no subsidy is applied to either crude purchases or foreign exchange.
It further explained that crude supplied through the naira-for-crude arrangement is still priced according to global benchmark rates before being converted to naira using the current exchange rate.
The company reaffirmed its commitment to supporting Nigeria’s energy security while responding to the economic realities faced by citizens.
First Reduction After Recent Increases
The latest adjustment marks the refinery’s first price reduction after three consecutive increases that had pushed petrol prices significantly higher in recent weeks.
On Monday, the refinery raised petrol prices to ₦1,175 per litre. Earlier in the month, the product had been sold at ₦995 per litre on March 7 and ₦874 per litre on March 2.
The Chief Executive Officer of the refinery, David Bird, recently explained that the facility is not insulated from global oil market fluctuations since its crude supply is purchased at international benchmark prices.
The price reduction comes as crude oil prices dropped to about $90 per barrel, marking the first decline since tensions escalated in the Middle East.
Global Conflict Driving Oil Market Volatility
The ongoing conflict involving the United States, Iran, and Israel has significantly influenced global oil prices, leading to fluctuations in petrol costs in Nigeria.
Speaking about the conflict, Donald Trump said the military campaign was progressing faster than expected and could end soon.
He warned that any attempt by Tehran to block oil shipments through the Strait of Hormuz — a route responsible for about one-fifth of global oil supply — could trigger a major response.
Marketers Warn of Possible Price Increase
Despite the current price reduction, oil marketers have cautioned that petrol prices could eventually rise to around ₦1,500 per litre if global tensions continue.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis‑Harry, gave the warning during an appearance on Channels Television’s programme The Morning Brief.
He explained that although fuel prices remain volatile, the steady supply from the Dangote refinery is crucial for Nigeria’s energy stability.
According to him, ensuring the availability of fuel is currently more important than the price itself.
Gillis-Harry noted that once logistics costs, distribution charges, and other operational expenses are added to the ex-gantry price, the pump price could climb further.
However, he urged Nigerians not to panic, stressing that maintaining consistent product availability would help businesses and support the country’s energy security.
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