Nigeria’s fuel market recorded a slight relief on Tuesday as the Dangote Petroleum Refinery announced a reduction in the price of Premium Motor Spirit (PMS), cutting the ex-gantry rate by N100.
The new price now stands at N1,075 per litre, down from the previous N1,175 per litre, marking the refinery’s first price reduction after three consecutive increases that had pushed petrol costs sharply upward in recent weeks.
The company also confirmed that petrol distributed through coastal channels will now be sold at about N1,050 per litre, providing marginally cheaper supply through maritime distribution networks.
In a related adjustment, the refinery reduced the price of diesel to N1,430 per litre, representing a N190 drop from its earlier price of N1,620 per litre.
According to the company, the revised pricing reflects the recent decline in global crude oil prices, emphasising that its operations remain tied to international market benchmarks.
The explained that crude supplied to the refinery including shipments under the government’s Naira-for-Crude arrangement is still priced using global benchmark rates with an added premium.
Payments for foreign exchange are also made at prevailing market rates without subsidy support.
The refinery stressed that the price review demonstrates its commitment to responsible corporate practices and to aligning domestic fuel prices with global market realities.
Industry observers said the adjustment comes amid a drop in international crude prices to around $90 per barrel, the first significant decline since tensions escalated in the Middle East involving the United States, Iran, and Israel, which had previously driven oil prices higher.
Despite the latest reduction, petroleum marketers warned that fuel prices could remain volatile.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) noted that global geopolitical tensions may still push petrol prices upward in the coming weeks.
PETROAN President Billy Gillis-Harry said that while prices remain high, the availability of products from the Dangote Refinery is helping Nigeria avoid widespread fuel shortages.
He added that maintaining supply stability is currently more critical for the economy than the price level itself, cautioning that petrol could climb toward N1,500 per litre if global market pressures intensify.
For now, the refinery’s price cut offers temporary relief to consumers and fuel marketers navigating Nigeria’s evolving post-subsidy fuel market.
