Dangote Petroleum Refinery may be preparing another downward review of its ex-depot prices for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1 aviation fuel as global crude oil prices continue to weaken, with Brent crude falling to $70.76 per barrel and West Texas Intermediate (WTI) dropping to $67.72 per barrel in early Thursday trading.
The sustained decline in international oil prices has renewed expectations across Nigeria's downstream petroleum sector that refiners and marketers will lower domestic fuel prices in line with prevailing market fundamentals. Brent crude has now retreated to levels seen before the recent Middle East conflict, easing production costs for refined petroleum products.
Industry observers note that Dangote Refinery has consistently responded to changes in crude prices in recent weeks. On June 25, the refinery reduced its PMS ex-gantry price by ₦50 per litre to ₦1,125 per litre, while Jet A1 was cut by ₦150 per litre to ₦1,300 per litre. Earlier, on June 19, it slashed the ex-depot price of diesel (AGO) by ₦100 per litre to ₦1,500 per litre. However, private depots have continued to sell below Dangote's gantry price, with PMS averaging about ₦1,120 per litre and AGO around ₦1,460 per litre across major depots, reflecting stronger competition in the downstream market and reinforcing expectations of another refinery price review.
A senior source at the refinery, who spoke with our correspondent, said the company remains committed to ensuring domestic fuel prices reflect developments in the international crude market.
"The refinery is committed to reducing prices as long as crude oil prices continue to decline," the source said.
The latest market development comes as pressure mounts on refiners and marketers to pass the benefits of lower crude prices on to consumers. The Federal Government has maintained that while the downstream sector remains fully deregulated, pump prices should reflect prevailing market realities rather than remain elevated after crude prices have fallen.
Speaking after the Federal Executive Council meeting earlier this week, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the government is engaging marketers and regulators to ensure fuel prices remain fair while preserving the commercial viability of operators.
"We are working to strike a balance between ensuring operators remain commercially viable and protecting Nigerians from unfair pricing," he said, noting that regulators are addressing delayed price reductions within the framework of the Petroleum Industry Act (PIA).
The call for lower prices was earlier echoed by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who said the easing of tensions between the United States and Iran had created room for lower petroleum prices. He stressed that although prices are determined by market forces in a deregulated market, operators should not use deregulation as an avenue for profiteering, adding that the PIA empowers regulators to protect consumers whenever market conditions support lower prices.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reinforced that position, warning marketers against arbitrary pricing and profiteering. The Authority said it is monitoring depots and filling stations nationwide to ensure petroleum products remain cost-reflective, warning that operators found exploiting consumers would face regulatory sanctions.
With international crude now hovering around the $70 per barrel mark and depot prices already trending lower, industry stakeholders will be watching closely to see whether Dangote Refinery responds with another reduction in gantry prices, a move that could trigger fresh price adjustments across depots and retail outlets nationwide.