Dangote Petroleum Refinery has announced a fresh reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, lowering the rate from N1,175 per litre to N1,125 per litre.
In a notice issued on Thursday, June 25, 2024, the refinery also disclosed a downward review of its coastal supply price, which was reduced from N1,495,215 per metric tonne to N1,428,165 per metric tonne.
According to Petrolueprice.ng, the revised pricing structure became effective on Thursday, June 25, 2024. The notice further instructed that all outstanding gantry volumes yet to be offloaded should be recalculated using the newly approved price schedule.
Management of the Dangote Refinery explained that the adjustment was driven by easing geopolitical tensions in the Middle East.
The calmer situation has contributed to a decline in global energy prices and reduced pressure on international crude oil markets.
Oil prices dip
The latest price review comes amid a broader decline in crude oil prices, which have fallen to their lowest point since before the Iran conflict. This follows the gradual normalization of shipping operations through the vital Strait of Hormuz, one of the world’s most important energy transit routes.
Brent crude, the international oil benchmark, briefly slipped below $72.48 per barrel, returning to the level seen before the United States and Israel carried out strikes on Iran on February 28. The commodity later regained some ground and traded at approximately $72.63 per barrel.
The BBC reported that global energy markets witnessed considerable fluctuations after Iran responded to the attacks, causing disruptions to maritime traffic through the Strait of Hormuz, a key channel for the transportation of oil and gas supplies worldwide.
Crude oil prices have continued their downward trend since the United States and Iran reached a Memorandum of Understanding (MOU) on June 17.
The agreement established a 60-day negotiation framework focused on Tehran’s nuclear programme and measures aimed at resolving the ongoing conflict.
Industry analysts believe that if crude oil prices continue to decline, Nigeria’s downstream petroleum market could witness additional reductions as marketers adjust their pricing to align with the refinery’s new rates.
Since beginning operations, the Dangote Refinery has emerged as a major force within the sector.
Most recent prices at depots on Wednesday
• Masters: N1,186
• Matrix: N1,197
• Sigmund: N1,184
• T.S.L: N1,181
• A.Y.M Shafa: N1,183
• Matrix: N1,187
• Nepal: N1,182
• Parker: N1,183
• Prudent: N1,185
• Rain Oil: N1,185
• A.A Rano: N1,160
• African Terminal: N1,160
• Aiteo: N1,159
• Bono: N1,160
• Emadeb: N1,160
• Integrated: N1,160
• Mao: N1,160
• MRS: N1,160
• Pinnacle: N1,172
