Dangote Refinery has reduced the price of petrol, bringing down the ex-gantry cost of Premium Motor Spirit (PMS) by N75 to N1,200 per litre, according to industry sources.

This price drop comes shortly after the refinery had increased petrol to about N1,275 per litre, blaming the earlier rise on global oil market instability that raised production and supply costs.

The recent reduction is linked to a fall in global crude oil prices, with Brent Crude dropping to about $95 per barrel and West Texas Intermediate also declining significantly.

Experts say the drop in oil prices is largely due to changes in global politics, especially a temporary ceasefire agreement between the United States and Iran, which has reduced fears of supply disruptions.

Fuel marketers and commuters across major cities have welcomed the development, hoping the lower petrol price will help reduce the high cost of living caused by inflation.

Industry observers believe the refinery’s decision could lead to lower pump prices nationwide if global oil prices continue to fall.

Analysts also note that Nigeria is still highly affected by international oil price changes, even with improvements in local refining.

The Dangote Refinery, which started operations in 2023, was expected to reduce Nigeria’s reliance on imported fuel.

However, its pricing system still follows global oil benchmarks like Brent and WTI, meaning local prices can still change based on international trends.