Fuel Costs Drop Below N1,300 Mark After Dangote Price Cut

Nigerians may be getting a measure of relief at the pumps as petrol prices have begun to fall below the N1,300-per-litre mark following a fresh reduction in ex-depot prices by the Dangote Petroleum Refinery.

The refinery recently lowered its gantry price for Premium Motor Spirit (PMS), commonly known as petrol, from N1,275 to N1,250 per litre, marking another downward adjustment in its pricing strategy. Diesel prices were also reduced from N1,800 to N1,700 per litre.

The latest price cut has triggered a ripple effect across the downstream petroleum sector, with private depot operators and marketers adjusting their rates to remain competitive. Industry data indicate that several depots have now reduced their selling prices, creating room for retail stations to lower pump prices and offer motorists fuel at rates below N1,300 per litre in some locations.

According to market observers, the reduction was influenced largely by a decline in global crude oil prices, which has eased pressure on refining costs. A Dangote official noted that while international oil prices remain volatile, the refinery’s decision reflects current market realities and its commitment to making fuel more affordable for consumers.

The move is expected to provide some relief for businesses and households grappling with high transportation and energy costs. Fuel prices have remained a major driver of inflation in Nigeria, affecting the cost of goods and services nationwide.

Analysts say increased competition among depots and marketers, combined with the growing influence of the Dangote Refinery in the domestic market, is gradually reshaping fuel pricing dynamics. The refinery has repeatedly stated that its pricing decisions are aimed at improving supply efficiency, supporting economic activities, and reducing the burden on consumers.

While consumers welcome the latest reduction, industry experts caution that petrol prices remain closely tied to developments in the international oil market. Any significant rise in crude oil prices or geopolitical tensions could quickly reverse the gains currently being experienced at filling stations.

For now, however, the decline in pump prices offers a welcome reprieve for millions of Nigerians, with hopes that sustained stability in the global oil market could pave the way for further reductions in the weeks ahead.