The Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for Premium Motor Spirit to N1,200 per liter, while pegging its coastal price at N1,153 per liter, a development expected to reshape fuel supply costs across Nigeria’s downstream distribution chain.
According to the spokesperson for the Dangote Group, Anthony Chiejina, the price adjustment represents a downward review in the refinery’s pricing template and comes at a time of heightened uncertainty in the global oil market driven by geopolitical tensions in the Middle East.
“Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price for petrol to N1,200 per litre and its coastal price to N1,153 per liter a move that comes amid ongoing tensions in the Middle East that continue to influence global oil markets.
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“The adjustment marks a downward review in the refinery’s pricing structure and is expected to influence fuel supply costs across distribution channels, including depots and retail outlets,” Chiejina said.
With the new N1,200 per liter rate, marketers are expected to recalibrate their landing costs, especially those sourcing locally instead of importing.
Similarly, the coastal price of N1,153 per liter is expected to affect marine deliveries to coastal depots, providing an alternative supply route for distributors operating in southern corridors.
AT the backdrop of excruciating retail prices of petrol across Nigeria despite the operation of domestic refining capacity, management of Dangote Refinery has indicated that the cushioning effect expected from its operations has been affected by global market forces including the crises in the middle-east, the world’s crude oil hub.
Speaking on Arise television interview the, Managing Director of the refinery, David Bird, stated: “On fuel pricing, the refinery is fully exposed to global market forces and operates without subsidies, making it vulnerable to fluctuations driven by geopolitical tensions.
We try and maintain some stability within a commercially acceptable range, but all our cost inputs—from crude to freight and insurance—are impacted.”
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