Petrol and diesel prices have started to decline as global crude oil prices retreat following the de-escalation of tensions in the Middle East. The reductions, led by the Dangote Petroleum Refinery and followed by some private depot operators, have raised expectations of further cuts in fuel prices, although marketers say the adjustments will be gradual to prevent heavy losses on existing stock.
The Independent Petroleum Marketers Association of Nigeria stated that the Dangote Petroleum Refinery will not embark on sudden fuel price cuts to prevent marketers from incurring heavy losses.
Even as oil prices continue to decline following the de-escalation of tensions in the Middle East, IPMAN said the refinery would rather adopt what it described as systematic price adjustments instead of drastic reductions.
Following the drop in crude oil prices from a high of $120 per barrel during the United States-Iran conflict to about $78 after a peace deal was reached on Sunday, the Dangote refinery reduced its petrol gantry price by N75 per litre. The refinery had raised the price from N830 to over N1,300 per litre during the crisis.
The refinery also reduced the prices of diesel and aviation fuel by N100 per litre each, citing the easing of tensions in the Middle East. However, many Nigerians argued that the reductions did not reflect the sharp decline in crude oil prices.
Speaking in an interview, IPMAN spokesman, Chinedu Ukadike, said the refinery understands the implications of a sudden price crash on fuel marketers.
“The reduction will be systematic. If Dangote does that reduction holistically, it will certainly affect some people who have products, and they might not be able to sell the products. This will cost marketers huge losses.
