By Mary Izuaka

 

The Dangote Petroleum Refinery has announced a N50 reduction in its petrol gantry price, lowering the ex-depot rate from N1,175 to N1,125 per litre.

The company, in a circular to marketers on Thursday, said the ex-depot price has been adjusted downward from N1,175 per litre to N1,125 per litre, while the coastal supply price was reduced from N1,495,215 per metric tonne to N1,428,165 per metric tonne.

The refinery attributed the price reduction to the easing of tensions in the Middle East, which has led to a decline in global energy prices.

Last Tuesday, the refinery announced a N25 reduction in its petrol gantry price, lowering the ex-depot rate from N1,250 to N1,175 per litre.

The reduction is part of the market’s response to recent fluctuations in global crude oil prices.

Oil prices settled 1 per cent lower on Tuesday. Brent futures closed down 82 cents, or 1.1 per cent, at $77.08 per barrel, while U.S. West Texas Intermediate futures finished 65 ‌cents, or 0.9 per cent, lower at $73.21 a barrel. Both benchmarks hit near-four-month lows during Tuesday’s session.

The decline reversed on Thursday, and oil prices rose more than 2 per cent after a cargo vessel was hit ‌by an unknown projectile near Oman.

Brent futures rose $1.52, or 2.1 per cent, to ​settle at $75.26 a barrel, while U.S. West Texas Intermediate crude rose $1.58, or 2.3 per cent, to settle at $71.92. On Wednesday, both crude benchmarks closed at their lowest since February 27.

With Dangote refinery’s price drop, oil marketers are expected to follow suit by lowering their pump prices, potentially leading to reduced retail fuel costs for consumers.