Marketers Say Dangote’s ₦75 Petrol Price Reduction Is Insufficient Amid High Fuel Costs
Petroleum marketers have described the recent ₦75 reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, by Dangote Petroleum Refinery as inadequate, arguing that it does not sufficiently offset the sharp increase consumers experienced during the recent global oil price surge.
Dangote Refinery announced that it had reduced its ex-depot petrol price to ₦1,175 per litre following an improvement in international crude oil market conditions. The refinery explained that the adjustment was driven by declining global crude prices after geopolitical tensions in the Middle East eased.
According to the company, the ceasefire agreement between the United States and Iran contributed to the reopening of the Strait of Hormuz, a key global shipping route for crude oil exports. This development helped stabilize oil supplies and pushed Brent crude prices down toward the $80 per barrel range after previously soaring above $120 per barrel.
In an official notice issued to marketers, Dangote Refinery stated that all outstanding and yet-to-be-loaded petrol volumes would be supplied at the newly approved price, reflecting the improved market situation.
Despite the reduction, marketers insist that the cut is not enough to significantly lower pump prices nationwide. They noted that retail fuel prices climbed rapidly from approximately ₦830 per litre to nearly ₦1,300 per litre during the recent oil market crisis, while the latest downward adjustment remains relatively small in comparison.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has advised fuel dealers across the country to avoid panic buying and hoarding, urging patience as the market gradually adjusts to the new pricing structure.
According to the association, many filling station operators still have existing fuel stock purchased at much higher costs, making it difficult to implement immediate and substantial reductions at retail outlets.
Industry analysts believe that if international crude oil prices remain stable at lower levels, petrol prices could eventually decline further and potentially approach ₦900 per litre. However, they cautioned that previously acquired higher-priced crude oil inventories held by refiners could delay additional price cuts.
The latest development highlights the strong influence of global oil market trends on Nigeria’s domestic fuel pricing system and underscores the challenges of balancing consumer expectations with market realities.
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Stakeholders say sustained reductions in crude oil prices will be necessary before Nigerians can experience meaningful and long-term relief at the pumps.
