As crude prices crashed below $80 per barrel on Tuesday, the Dangote Petroleum Refinery reduced the ex-depot prices of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel), saying it was part of efforts to make petroleum products more affordable.
Under the new pricing structure, the refinery reduced the price of petrol from N1,215 per litre to N1,165, representing a N50 reduction, while diesel was cut from N1,650 per litre to N1,570, amounting to an N80 reduction.
The price of Brent crude, the global benchmark for oil prices, fell by almost five per cent to below $80 per barrel on Tuesday following growing hopes of an agreement between the United States and Iran to reopen the Strait of Hormuz.
The decline came after senior US officials said talks with Iran had made progress, raising the prospect that commercial shipping through the key waterway could resume as soon as this week.
A senior Gulf official said there is a “50-50” chance Iran will reach a deal on the Strait of Hormuz by Friday.
Reflecting the drop in crude oil prices from a high of $100 per barrel last week to $79, the Dangote Group said in a statement on Wednesday that the price review was aimed at enhancing energy affordability, improving access to refined petroleum products, and supporting economic activities across Nigeria.
According to the refinery, the move reflects its commitment to providing “affordable, high-quality petroleum products to the Nigerian market.” It added that it remained committed to ensuring stable supply while leveraging operational efficiencies to deliver value to consumers, businesses, and stakeholders.
The company said it would continue to pass on the benefits of improved operational efficiencies to consumers whenever market conditions permit.
It stated that the refinery continues to play a pivotal role in strengthening Nigeria’s energy security, reducing reliance on imports, and supporting the nation’s economic development through the supply of world-class petroleum products.
“Dangote Petroleum Refinery has announced a reduction in the ex-depot prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel), reaffirming its commitment to providing affordable, high-quality petroleum products to the Nigerian market.
“Under the new pricing structure, the refinery has reduced the ex-depot price of PMS to N1,165 per litre, down from N1,215 per litre, representing a reduction of N50 per litre. Similarly, the ex-depot price of Diesel has been reduced to N1,570 per litre from N1,650 per litre, amounting to a decrease of N80 per litre.
“The price review reflects Dangote Refinery’s ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria,” the statement read partly.
As Africa’s largest refinery, Dangote reaffirmed its dedication to contributing to the growth of the Nigerian economy and passing on the benefits of improved operational efficiencies to consumers whenever market conditions permit.
With the new price reduction, petrol is expected to retail at between N1,200 and N1,250 per litre. However, this depends on the location and other logistics.
Meanwhile, Iran and Oman were said to have agreed on the geographical coordinates of a proposed safe shipping route for commercial vessels in the Strait of Hormuz, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Wednesday.
CNN reports that the two countries have held talks over the past two months covering the technical, legal, security, and environmental aspects of the proposed route, Baghaei said in response to questions about the talks.
Baghaei described the negotiations as “professional” and “progressing,” adding that a joint statement setting out the main points of agreement is being reviewed and finalised.
“Provided that certain third parties do not obstruct the process, the joint statement of the two countries, including the principal considerations and points of agreement, is also in the final stage of review and drafting,” he was quoted as saying.
SOURCE: PUNCH NEWS PAPER
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