Fuel, diesel pump prices set to drop further as Dangote Refinery cuts gantry rates

The cost of petrol and diesel at the pump is expected to fall by as much as N50 and N80 per litre respectively in the coming days, following a fresh price reduction by Dangote Refinery.

On Wednesday, the refinery lowered its gantry prices for Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) by N50 and N80, bringing them to N1,165 per litre and N1,570 per litre respectively.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed that the impact will reach retail outlets by the weekend or Monday. Its president, Abubakar Maigandi, said pump prices will drop as soon as marketers begin lifting products under the new pricing template.

Currently, petrol sells for between N1,265 and N1,310 per litre in Abuja and surrounding areas, while diesel ranges from N1,700 to N1,800 per litre. An official at an MRS filling station in Abuja, who asked not to be named, indicated that his outlet is likely to reduce petrol to N1,215 per litre from this weekend or Monday.

The reduction comes amid persistent volatility in global crude markets. At the time of this report, Brent crude was trading at around $79 per barrel, while West Texas Intermediate stood at $74, with speculation over a possible US-Iran deal on the Strait of Hormuz adding to downward pressure on prices.