The Dangote Petroleum Refinery has further reduced the ex-depot prices of diesel and aviation fuel, extending a wave of price cuts triggered by declining global crude oil prices and easing tensions in the Middle East.
Industry data obtained from Petroleumprice.ng showed that the refinery cut the gantry price of Automotive Gas Oil (diesel) by N100 per litre, reducing it from N1,700 to N1,600 per litre. Aviation Turbine Kerosene (ATK), commonly known as jet fuel, was also reduced by N100 per litre, dropping from N1,550 to N1,450 per litre.
The latest adjustment comes barely a day after the refinery announced a N75 reduction in the gantry price of Premium Motor Spirit (petrol), bringing the product down from N1,250 to N1,175 per litre.
Market analysts attributed the reductions to the continued decline in international crude oil prices following the de-escalation of hostilities between the United States and Iran.
The refinery’s aggressive pricing strategy has also begun to influence private depot operators, many of whom are adjusting their rates to remain competitive.
According to market data, Rainoil recently reduced its jet fuel price from N1,553 per litre to N1,550 per litre. Diesel prices across major Lagos depots, including African Terminal, Sahara, Ibeto and Duport, averaged N1,660 per litre at the close of trading on Tuesday.
Meanwhile, global oil prices continued their downward trend, with Brent crude falling below the $80 per barrel mark for the first time in nearly three months.
Data from Oilprice.com indicated that Brent crude declined from $83 per barrel on Monday to about $78 per barrel on Tuesday. The benchmark crude had surged to nearly $120 per barrel during the height of the Middle East conflict, compared to levels below $70 per barrel before the crisis erupted.
Industry stakeholders say the easing geopolitical tensions could lead to further reductions in the cost of refined petroleum products if the current trend persists.
National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said consumers should expect gradual adjustments in pump prices as marketers work through existing inventories purchased at higher rates.
According to him, immediate price reductions are often difficult because many filling station operators still have products acquired before the latest cuts.
He explained that whenever Dangote Refinery announces a new pricing regime, loading activities typically slow down temporarily, giving marketers time to dispose of old stock before taking delivery of cheaper products.
Ukadike expressed optimism that retail prices would begin to reflect the new realities within days as fresh supplies enter the market.
However, the National Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Joseph Obele, raised concerns over the pricing dynamics in the downstream sector.
Obele argued that imported petroleum products appear to be selling at lower prices than some locally refined products and urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to approve more import licences to encourage competition.
The latest price cuts have also generated mixed reactions among Nigerians, with many consumers on social media insisting that domestic fuel prices should fall more significantly in line with the sharp decline in global crude oil prices.
Despite the concerns, industry observers believe the sustained drop in crude oil prices and increased competition among suppliers could provide relief for consumers in the coming weeks.