Petrol and diesel prices are gradually declining across Nigeria as global crude oil prices continue to fall following the easing of tensions in the Middle East.
The price reductions, initiated by the Dangote Petroleum Refinery and later adopted by some private depot operators, have sparked hopes of further cuts in the coming weeks. However, industry stakeholders say the process will be gradual to protect fuel marketers from major financial losses.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said the Dangote refinery is expected to implement fuel price reductions in stages rather than making drastic adjustments that could negatively affect marketers holding expensive stock.
According to IPMAN spokesperson Chinedu Ukadike, a sudden crash in fuel prices would leave many marketers unable to recover their costs, resulting in significant losses.
He explained that the refinery is likely to adopt a gradual pricing approach that reflects changes in global crude oil prices while taking into account refining costs and market realities.
Global crude prices reportedly dropped from about $120 per barrel during the period of heightened tensions involving the United States and Iran to around $78 per barrel after a ceasefire agreement was reached.
Following the decline, the Dangote refinery reduced its petrol loading price by N75 per litre, bringing it down from N1,250 to N1,175 per litre. Diesel and aviation fuel prices were also cut by N100 per litre each.
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Despite the reductions, some consumers argued that the new prices do not fully reflect the sharp fall in international crude oil prices.
Ukadike, however, urged Nigerians to remain patient, noting that fuel prices would continue to adjust as the market stabilises.
He added that plans to reopen the Strait of Hormuz have further improved market confidence, with expectations that fuel prices will continue to decline in the coming weeks.
A source within the Dangote Group said the refinery is still processing crude oil purchased when prices were higher and is closely monitoring developments in the global market.
The source maintained that fuel pricing is influenced by several factors and warned against expecting immediate and steep reductions.
Meanwhile, some private depot operators have also adjusted their prices, lowering petrol costs to about N1,180 per litre in response to the refinery’s latest price cut.
