(Fuel pump. Photo by Punch News)
Several filling stations along the Lagos-Ibadan Expressway and in parts of Lagos and Ogun states have begun selling petrol below N1,300 per litre, following a price reduction announced by the Dangote Petroleum Refinery on Saturday.
As widely reported across various online platforms, the refinery had announced a cut in its ex-depot price of petrol from N1,275 to N1,250 per litre, while diesel was reduced from N1,800 to N1,700 per litre.
The refinery described the move as part of its broader commitment to making refined petroleum products more affordable and supporting economic activity across the country.
On-the-ground observations on Tuesday showed that some MRS filling stations in the Mowe/Ibafo area of Ogun State along the Lagos-Ibadan Expressway had adjusted their pump prices to N1,286 per litre.
NIPCO and Heyden were selling at N1,290 per litre as of Monday, while SGR offered the product at N1,297 per litre.
That said, many stations have yet to fully reflect the price drop.
The Nigerian National Petroleum Company Limited’s retail outlets in Ibafo were selling at N1,305 per litre, Mobil at N1,310 per litre, and Asharami at N1,320 per litre. Diesel prices at many stations also fell, with N1,800 per litre now widely observed, down from a previous N1,900 per litre.
A Dangote refinery official explained that the price adjustment was in response to a recent dip in global crude oil prices before Monday’s rebound.
The 650,000-barrel-per-day refinery has been progressively supplying the domestic market with refined products since it commenced operations, with the aim of reducing Nigeria’s reliance on imported fuel.
The recent spike in fuel prices in Nigeria was largely driven by a surge in global crude oil prices that began in late February, when tensions between the United States and Iran intensified.
Over the following three months, crude oil traded above $100 per barrel and reached as high as $115 at certain points, triggering sharp increases in fuel prices worldwide.
In Nigeria, petrol prices climbed from N830 per litre to around N1,300, while diesel and aviation fuel also rose significantly, prompting airline operators to threaten a suspension of services.
However, the prospect of further price reductions has been clouded by fresh geopolitical developments. Oil prices rebounded sharply on Monday after the United States resumed strikes on Iran amid ongoing negotiations between the two countries.
Compounding the situation, Israeli forces were reported to have entered Lebanon over the weekend, deepening fears of a broader regional escalation.
According to Oilprice.com, Brent crude surged by more than seven percent from $91.12 to $97.52 per barrel after Iran’s state-affiliated media reported that Tehran was severing diplomatic ties with Washington and moving to block the strategically vital Strait of Hormuz.
The renewed rise in crude prices has raised fresh concerns about another round of global fuel cost increases, with significant implications for energy-importing nations, including Nigeria.
Stakeholders, however, remain hopeful that the Dangote refinery will consider further price reductions should global oil prices ease once more.