Filling Stations Reduce Fuel Pump Price After Dangote Refinery Gantry Cut

Nigerian filling stations have begun reducing fuel pump prices, five days after Dangote Refinery cut its gantry price.

A market survey by Daily Post on Sunday morning showed that Eterna, NIPCO, AA Rano and Ranoil filling stations have all dropped their pump price to between N1,280 and N1,300 per litre in Abuja and environs, down from N1,340.

That represents a cut of about N35 to N55 per litre at those outlets. NNPCL retail stations have not yet reduced their price, which remains at N1,335 per litre.

The reductions follow Dangote Refinery’s decision to cut petrol at the gantry to N1,175 per litre after a global drop in crude oil prices, as reported here. MRS filling stations, backed by Dangote, had already cut their price by N76 to N1,241 per litre on Friday.

Crude oil prices stood at $76 for West Texas Intermediate and $80 for Brent as of Sunday morning. The price adjustments come amid shifting global oil dynamics, including Iran’s closure of the Strait of Hormuz after strikes on Lebanon, which caused a slight surge in prices.

The lag between Dangote’s gantry cut and the downstream retail response had drawn attention from petroleum marketers. PETROAN, the Petroleum Products Retail Outlets Owners Association, had urged retailers to pass on the lower costs to consumers earlier in the week.

NNPCL outlets are expected to adjust their prices in the coming days as competition from Dangote-backed stations puts pressure on the market.

Sources: Daily Post