The Dangote Petroleum Refinery has reduced the ex-depot prices of Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (AGO), commonly referred to as diesel, following the sharp decline in global crude oil prices.
The latest adjustment comes after Brent crude, the international benchmark for oil prices, fell by nearly five per cent to below $80 per barrel on Tuesday amid growing optimism that the United States and Iran could soon reach an agreement to reopen the Strait of Hormuz, a vital route for global oil shipments.
Under the refinery’s revised pricing structure, the ex-depot price of petrol has been reduced from ₦1,215 per litre to ₦1,165 per litre, representing a ₦50 reduction, while diesel has dropped from ₦1,650 per litre to ₦1,570 per litre, translating to a ₦80 reduction.
The decline in international crude prices followed reports from senior United States officials indicating progress in negotiations with Iran, raising expectations that commercial shipping through the Strait of Hormuz could resume within days.
A senior Gulf official was also quoted as saying there is a “50-50” chance that Iran and international negotiators could reach an agreement on the strategic waterway before Friday.
Reacting to the development, Dangote Petroleum Refinery said the latest price review reflects its commitment to making petroleum products more affordable while supporting economic growth across Nigeria.
The company explained that the reduction was made possible by improved market conditions and operational efficiencies, following the fall in crude oil prices from around $100 per barrel last week to approximately $79 per barrel.
In a statement released on Wednesday, the refinery reaffirmed its commitment to delivering affordable, high-quality petroleum products to Nigerians.
“Dangote Petroleum Refinery has announced a reduction in the ex-depot prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel), reaffirming its commitment to providing affordable, high-quality petroleum products to the Nigerian market.
“Under the new pricing structure, the refinery has reduced the ex-depot price of PMS to N1,165 per litre, down from N1,215 per litre, representing a reduction of N50 per litre. Similarly, the ex-depot price of Diesel has been reduced to N1,570 per litre from N1,650 per litre, amounting to a decrease of N80 per litre.
“The price review reflects Dangote Refinery’s ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria.”
The refinery added that it would continue to transfer the benefits of improved operational efficiency to consumers whenever market conditions make such reductions possible.
It also reiterated its role in strengthening Nigeria’s energy security by reducing dependence on imported petroleum products while supplying refined fuels that meet international quality standards.
As Africa’s largest single-train refinery, Dangote said it remains committed to supporting Nigeria’s economic development through reliable fuel supply and competitive pricing.
With the latest reduction, industry observers estimate that the pump price of petrol could fall to between ₦1,200 and ₦1,250 per litre, although actual retail prices will vary depending on location, transportation costs and marketers’ margins.
Meanwhile, diplomatic efforts aimed at easing tensions in the Middle East continue to influence global oil markets.
According to CNN, Iran and Oman have reportedly reached an agreement on the geographical coordinates for a proposed safe commercial shipping corridor through the Strait of Hormuz.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said discussions between both countries over the past two months have covered technical, legal, security and environmental issues relating to the proposed route.
Baghaei described the negotiations as “professional” and “progressing,” noting that a joint statement outlining the major areas of agreement is currently being finalised.
“Provided that certain third parties do not obstruct the process, the joint statement of the two countries, including the principal considerations and points of agreement, is also in the final stage of review and drafting,” he was quoted as saying.
Analysts say any successful agreement to fully reopen the Strait of Hormuz could further stabilise global crude oil prices, potentially creating room for additional reductions in the cost of refined petroleum products in Nigeria and other oil-importing countries.
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