Dangote Petroleum Refinery has announced a fresh reduction in the ex-depot prices of Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), also known as diesel, following a sharp decline in global crude oil prices amid renewed diplomatic efforts between the United States and Iran.
The new pricing, which takes effect on Thursday, August 6, sees the ex-depot price of PMS reduced by N50 per litre to N1,165 from the previous N1,215 per litre. Diesel also recorded a significant price cut, with the refinery lowering its ex-depot price by N80 per litre from N1,650 to N1,570 per litre.
The refinery said the latest review reflects its commitment to making petroleum products more affordable for Nigerians while supporting businesses and economic activities through lower energy costs.
According to the company, the reduction underscores its strategy of passing on the benefits of improved operational efficiencies and favourable market conditions to consumers whenever possible.
‘Dangote Petroleum Refinery remains committed to ensuring stable supply while leveraging operational efficiencies to deliver value to consumers, businesses and stakeholders,’ the company said in a statement.
As Africa’s largest refinery, Dangote stated that it remains focused on strengthening Nigeria’s energy security, reducing dependence on imported refined petroleum products and contributing to the country’s broader economic development.
The latest price adjustment came against the backdrop of a sharp decline in international crude oil prices, driven largely by growing optimism that renewed diplomatic engagement between Washington and Tehran could ease geopolitical tensions in the Middle East.
Oil prices fell by more than five per cent on Tuesday and the decline persisted on Wednesday as traders reacted positively to reports that the United States and Iran were making progress toward a possible framework agreement that could reduce the risk of prolonged supply disruptions from one of the world’s most strategic oil-producing regions.
At the time of reporting, Brent crude traded at $79.70 per barrel, representing a 5.23 per cent decline, while the United States benchmark, West Texas Intermediate (WTI), dropped to $75.62 per barrel.
However, uncertainty remains over the prospects of a final agreement. Iranian authorities have maintained that no formal negotiations with the United States are currently taking place, leaving investors to balance hopes of a diplomatic breakthrough against the continued possibility of renewed military escalation.
Further weighing on oil prices, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) confirmed that members implementing voluntary production cuts would increase collective crude output by 188,000 barrels per day in September. The increase marks the final phase of unwinding the 1.65 million barrels per day production cuts first introduced in 2023.
Despite the recent decline in crude prices, supply risks remain elevated across global energy markets. Shipping through the Strait of Hormuz continues to face security challenges, with reports of attacks on commercial vessels near Oman’s Al Khasab port adding to concerns over maritime safety.
Meanwhile, President Trump has intensified pressure on major US oil companies, including ExxonMobil and Chevron, urging refiners and fuel retailers to reduce petrol prices and pass on the benefits of lower crude costs to consumers.
In Nigeria, some marketers told Daily Trust they were still monitoring the current situation and things are still dicey.
‘We are still watching and tracking developments. As of today we can’t predict the direction of the market,’ a marketer said.