The Dangote refinery reduced its ex-gantry petrol price to ₦1,075 per litre on Tuesday, representing a ₦100 drop from the previous rate of ₦1,175 per litre.

Dangote Group’s Chief Communications Officer, Anthony Chiejina, told press on the phone that petrol supplied through coastal distribution will now sell at ₦1,050 per litre.

The Dangote refinery said the price of diesel has also been reduced to ₦1,430 per litre, representing a ₦190 drop from the prior price of ₦1,620 per litre.

“Under the revised pricing structure, the gantry price of PMS has been reduced from ₦1,175 to ₦1,075 (₦100) per litre, while the coastal price has been lowered from ₦1,150 to ₦1,028 (₦122) per litre. The price of diesel has also been reduced from ₦1,620 to ₦1,430 (₦190) per litre,” the refinery said.

The refinery explained that the move reflects global oil prices.

“As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices,” it explained in the statement on Tuesday.

“All our crudes are priced on the global benchmark price plus a $3 to $6 additional premium. Our forex is paid at the prevailing market rate of the day, with no subsidy in both crude and forex.

“For the avoidance of doubt, the crude supplied under the Naira-for-Crude arrangement is priced according to the global benchmark price plus a premium which is then converted to naira using the prevailing market exchange rate.”

The refinery reiterated its commitment to strengthening national energy security in line with the economic realities faced by Nigerians.

This marks the first price cut after three successive hikes that had pushed the cost of the commodity significantly higher in recent weeks.

On March 9, the chief executive officer (CEO) of the refinery, David Bird, said the Dangote refinery was not immune to global oil shocks as it secures its crude on international benchmarks.

The Dangote Refinery’s reduction in the cost of the essential commodity comes as crude oil prices dropped to $90 a barrel on Tuesday, the first decline since the war in the Middle East began.

The war involving the United States (US), Iran, and Israel raised global oil prices, leading to a hike in petrol prices in Nigeria.

As the crisis in the crude-rich Middle East continued into a second week, with seemingly little sign of a conclusion on the horizon, US President Donald Trump said that the campaign was far ahead of his initial timeline of around a month.

“I think the war is very complete, pretty much. They have no navy, no communications, and they’ve got no air force,” Trump told CBS News by phone.

“If you look, they have nothing left. There’s nothing left in a military sense,” he added.

Trump told the US broadcaster that the United States was “very far” ahead of his initially stated wartime frame of four or five weeks.

He later told a news conference in Florida that “it’s going to be ended soon, and if it starts up again, they’ll be hit even harder”.

When asked if he thought the war could end in days or weeks, he replied, “I think soon. Very soon.”

The US leader also threatened an attack of “incalculable” size if Tehran blocks oil supplies coming through the Strait of Hormuz, through which a fifth of global supplies pass.

His remarks come just days after he issued a statement saying Iran’s “unconditional surrender” was the only acceptable outcome for ending the war, which sent shivers through markets fearing an elongated war.

Meanwhile, oil marketers have advised Nigerians to brace up for a continued rise in the price of Premium Motor Spirit (PMS) or petrol, to about ₦1500 per litre as the US-Israeli and Iranian conflicts show no sign of abating.

National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), President, Dr. Billy Gillis-Harry, advised Nigerians while appearing on Channels Television’s The Morning Brief on Tuesday to discuss ‘The Effect Of Global War On Fuel Prices’.

According to him, product availability currently being provided by the Dangote Petroleum Refinery, even though at higher prices, was a better option than scarcity.

“The reality is that if you look at the volatility in the price from what we are seeing today, the Dangote Refinery is the salvation for us due to the consistent source of product, which is much more important at this time than anything.

“The availability of product is much more important than pricing. The pricing we predicted has risen above ₦1,000 per litre, the other time, to ₦1,175 at the gantry.

“By the time we add the charges, logistics, and others, the price will get higher and higher. So, yes, ₦1500 per litre is not far-fetched. It should not make us panic.

“It is better for us to have the product available, be able to do our business, and get some level of energy security than not having it,” he said.