Dangote Petroleum Refinery has once again reduced its ex-depot petrol price, this time to N1,250 per litre. This decision, announced on Friday, May 29, comes amid a continued decline in global crude oil prices, which has been widely anticipated by fuel marketers across Nigeria.
Price Reduction Details
The new price represents a N25 reduction from the previous N1,275 per litre. With this move, Dangote Refinery reclaims its position as the cheapest source of petrol for marketers, undercutting many private depots. The reduction is expected to have an immediate impact on prices at other depots and along the fuel marketing chain.
Market Reactions
According to Petroleumprice.ng, depot operators have already begun adjusting their prices in anticipation of the refinery's announcement. Throughout the past week, many fuel marketers delayed purchases from depot operators and refiners, expecting a price drop. On Friday, petrol at private depots such as Aiteo and Nipco was sold at N1,272 per litre, while others like Integrated Energy, Ascon Oil, and African Terminal sold at approximately N1,274 per litre. These prices were already lower than the previous Dangote ex-depot price of N1,275. In the coming week, further adjustments are expected as depots strive to remain competitive with Dangote.
Reasons for the Price Decline
The reduction in petrol prices is largely attributed to the falling cost of crude oil on the international market. Brent crude fell by 1.70% to $91.12 per barrel, while US West Texas Intermediate dropped by 1.73% to $87.36 on Friday. Industry stakeholders have noted that if crude prices continue to decline, the recent move by Dangote Refinery could lead to additional price drops at private depots in the coming days, easing pressure on downstream costs.
Since commencing operations, Dangote Refinery has become an increasingly influential player in Nigeria's fuel market. Its pricing decisions often shape the prices Nigerians pay at filling stations and influence depot pricing patterns. Market analysts believe that this latest reduction reinforces Dangote's growing role in determining domestic petrol pricing, especially as marketers and depot operators closely monitor its pricing strategy when making purchasing decisions.
Earlier Developments
Previously, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) had reduced petrol prices at its retail outlets. This followed Dangote Refinery's earlier reduction of its petrol gantry price by N85 to N1,200 per litre from N1,285. Checks showed that petrol in Lagos was then selling at N1,255 per litre, down from N1,330, a reduction of N75. In Abuja, NNPC reduced the price to N1,295 per litre from N1,361.
