Petrol Price Crash: Dangote Refinery slashes PMS to ₦1,200 after global oil drop

The Dangote Refinery has reduced the price of Premium Motor Spirit (PMS), which should help ease the pressure many people feel at the pump. The price has been cut down to ₦1,200 per litre, reversing the recent hike.

This change came after the refinery reduced its former gantry price by ₦75, bringing it from around ₦1,275 per litre. This move is already causing quite a stir in the downstream sector.

This latest adjustment happened just days after the refinery raised petrol prices, blaming the volatility they saw in global oil markets. But things changed quickly, prompting this downward revision. Analysts point out that this shows how sensitive local fuel prices are to what's happening with international crude oil trends.

The price drop is directly tied to a sharp fall in global crude oil benchmarks: Brent crude went down to $95.05 per barrel (that's about a 13% drop), and WTI crude also dropped, falling to $97.18 per barrel (nearly a 14% decline).

Energy analysts say the sudden dip eased cost pressures on refiners, making the ₦75 reduction possible.

Market watchers attribute the crash in crude prices to a geopolitical development involving Donald Trump.

READ ALSO: NNPC increases Dangote refinery crude oil supply to 10 cargoes

Reports indicate that Trump announced a conditional two-week ceasefire with Iran, a move that significantly reduced fears of immediate disruption to global oil supply.

The easing of tensions triggered a sell-off in oil markets, leading to lower prices worldwide.

The reduction is expected to slightly ease pump prices across the country, reduce transportation and logistics costs, and offer temporary relief to businesses and households.

However, industry players warn that fuel prices may remain unstable, as they continue to depend heavily on global oil dynamics.

Despite the price cut, experts caution that the situation remains fluid.

Any shift in global tensions or supply disruptions could push crude prices—and local petrol prices- back up again.

Also, the Nigerian National Petroleum Company Limited increased crude supply to Dangote Petroleum Refinery to 10 cargoes, as Aliko Dangote seeks improved fuel availability.

This was revealed during a visit to the industrial complex in Ibeju-Lekki, Lagos, where Aliko Dangote, President and Chief Executive of Dangote Industries Limited, speaking with the deputy Secretary-General of the United Nations, Mrs. Amina Mohammed, revealed the information.

Talking about feedstock supply, Dangote appreciated NNPC for the increased supply of crude oil in March to the refinery. He disclosed that the volumes have increased to 10 cargoes, six supplied in naira and four in dollars, to support fuel availability in the country, according to a statement released by the Refinery.