Dangote Refinery Adjusts Fuel Prices
In a significant move, Dangote Refinery has reduced the price of petrol to N1,075 per litre from N1,175 per litre, effective today. The price adjustment also includes a reduction in diesel prices, which now stand at N1,430 per litre, down from N1,620 per litre.
This price change is attributed to a recent decline in global crude oil prices, which have been volatile in recent months. The price of Premium Motor Spirit (PMS) supplied through coastal distribution will now sell at N1,050 per litre.
Despite the reductions, some filling stations are still charging higher rates, with petrol prices reaching N1,400 per litre at certain locations. Additionally, diesel prices could potentially rise to N1,750 per litre at filling stations in Abuja, indicating ongoing fluctuations in the market.
The backdrop to these adjustments is a history of rapid increases in fuel prices in Nigeria, driven largely by global crude price volatility. Before this recent adjustment, the price of petrol had surged by N525 per litre at Nigerian National Petroleum Company Limited (NNPC) retail outlets.
Industry experts have weighed in on the situation. Billy Gillis-Harry noted, “We have a Naira-for-crude deal in place. However, the policy does not impact the crude oil price on the international crude oil market.” Chinedu Ukadike added, “The only benefit of Dangote Refinery is that there will be supply, no fuel scarcity.”
As global oil prices continue to fluctuate, with Brent crude recently peaking at $104.4 per barrel before moderating to $99.4 per barrel, the implications for fuel pricing in Nigeria remain a point of concern for consumers and analysts alike. David Bird remarked, “I think it is very clear from global headlines that what is going on in the Middle East is impacting not just the oil price but also gas and LNG.”
Details remain unconfirmed regarding the long-term stability of these prices, as observers continue to monitor the situation closely.