Private Depots Cut Fuel Prices Below Dangote Rates Amid Falling Global Oil Prices
Private petroleum depots across Nigeria have started reducing the prices of petrol and diesel below the gantry rates offered by the Dangote Petroleum Refinery following the recent decline in global crude oil prices.
The downward price adjustments come amid easing tensions around the Strait of Hormuz and ongoing diplomatic discussions between the United States and Iran, which have contributed to a sharp drop in international oil prices.
Market checks by Petroleumprice.ng on Monday showed that several depot operators in Lagos revised their petrol prices below Dangote Refinery’s ₦1,275 per litre gantry rate.
Ardova Petroleum adjusted its petrol price to ₦1,275 per litre, while Nipco and Aiteo reduced their prices further to ₦1,274 per litre.
The price reductions have also spread to the diesel market.
In Warri, Rainoil and Danmarna reviewed Automotive Gas Oil (AGO), popularly known as diesel, prices downward to ₦1,798 per litre.
Industry players attributed the adjustments to declining international crude oil prices and expectations of lower import replacement costs for petroleum products.
As of 5 p.m. WAT on Monday, Brent crude traded at $97.62 per barrel after falling by 5.72 percent, while U.S. West Texas Intermediate crude dropped 5.71 percent to $91.08 per barrel.
Oil traders and marketers said depot operators were responding to softer global crude prices while also competing aggressively to attract buyers and maintain product sales volumes.
According to market sources, more price reductions may occur across other depots if international crude oil prices continue to decline in the coming days.
The latest development further reflects the increasing impact of global oil market movements on Nigeria’s deregulated downstream petroleum sector, where local fuel prices now respond more directly to changes in international crude prices and supply conditions.
