Dangote Refinery Faces Calls to Lower Petrol Prices Amid Crude Oil Price Drop
Nigeria's domestic petrol market is under renewed pressure to adjust prices downward following a decline in international crude oil prices. Brent crude and West Texas Intermediate (WTI) crude have fallen to $88.10 and $83.40 per barrel respectively, putting pressure on domestic refiners and marketers to reflect the lower international crude benchmark in their local pricing.
The Dangote Petroleum Refinery, Nigeria's largest domestic refinery, increased its gantry price for Premium Motor Spirit (PMS) by ₦100 per litre between August 21 and August 29, taking the price to ₦1,265 per litre. Industry sources say this increase has filtered through the downstream supply chain, with several petroleum product depot owners also adjusting their ex-depot prices upward.
Operators including Soroman, Bono, Aiteo, Techno Oil, and Optima were reported to be selling PMS to marketers at between ₦1,200 and ₦1,215 per litre as of the time of reporting. Ex-depot prices are a major component of the final price paid by motorists because they determine the cost at which filling stations and other petroleum marketers obtain products before adding transportation, storage, operating costs, margins, and other applicable charges.
With pump prices remaining above ₦1,200 across Abuja and its environs, consumers and industry stakeholders are expected to closely monitor the response of refiners and depot owners. Analysts have consistently noted that crude oil prices are only one component of petrol pricing in Nigeria, with exchange-rate movements, refining costs, transportation, storage, distribution expenses, and market margins also influencing the final pump price.