The fears of most Nigerians of alleged ‘manipulation’ of petrol prices by the Dangote Petroleum Refinery & Petrochemicals (DPRP) amid fluctuations in international oil prices may have been confirmed following reduction of its prices despite continued pressure on the prices at the market.
DPRP has reduced its gantry price for Premium Motor Spirit (PMS), also known as petrol, to ₦1,200 per litre, marking a significant downward adjustment of up to ₦150 per litre.
The refinery also cut its coastal price to ₦1,153 per litre, reflecting a broader review of its pricing structure.
But Reuters report says that stock indexes fell sharply on Thursday and Brent oil futures spiked to settle at $108 a barrel as hopes diminished for a quick resolution to the nearly one-month-old Middle East war.
Infact, a senior Iranian official told Reuters that a U.S. proposal for ending nearly four weeks of fighting is “one-sided and unfair,” while U.S. President Donald Trump said Iran must make a deal or face a continued onslaught.
Global debt markets also sold off, pushing yields higher, while safe-haven buying boosted the U.S. dollar.
U.S. stock indexes extended losses in afternoon trading, and the Nasdaq was down more than 10% from its October 29 closing high, putting it on track to confirm a correction.
Prospects of a prolonged war in the Middle East fanned worries about energy supply disruptions. Oil and European natural gas rose, with Brent futures settling at $108.01 a barrel.
The war, triggered by U.S.–Israeli strikes on Iran, has rattled global markets and effectively shut the Strait of Hormuz, a conduit for a fifth of global oil and liquefied natural gas flows.
Consequently, DRPC has had to increase price of petrol several times, and even over four times in a month, recently, making some Nigerians to wonder whether the company operates on ‘carry go’ as well as ‘ cash and carry’ on daily basis.
For instance the Refinery increased the price of its product, the very week the crisis started impacting on the supply chain and consequently on the prices at the international market, making some Nigerians to wonder why the sudden effect, when the company ought to have had some crude in its stock that should have lasted more days.
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Besides, the recommendation of working from home by Danote was considered by some analysts in bad faith and ill-timed, more so as most Nigerians have been suffering from persistent electricity outages, a development that renders the recommendation illogical, as neither the electricity to power the infrastructure nor the resources to buy rising prices of petrol and diesel are within the reach of an average Nigerian currently.
Prior to the reduction, gantry prices hovered between ₦1,300 and ₦1,350 per litre, making the latest adjustment one of the most notable price drops in recent weeks, even without similar reduction st the international market..
Curiously, the move is coming despite ongoing tensions in the region which have continued to exert upward pressure on global oil prices.
However. industry observers were optimistic about the influence of the reduction on fuel pricing across the downstream sector, particularly at depots and retail outlets, with potential implications for pump prices nationwide.
The development is also seen as a strategic effort to enhance competitiveness, ease supply costs, and consolidate market share in Nigeria’s evolving petroleum market.
Market stakeholders are expected to monitor how quickly the price adjustment translates to lower retail prices and broader consumer relief.