News: Abiodun Moboluwaji
Dangote Petroleum Refinery & Petrochemicals has reduced its gantry price of diesel by N200 as a result of independent importers reportedly to have received new shipments.
The refinery slashed the price from N1,800 per litre to N1,600 on Wednesday, according to update released by Platts, an independent provider of information and benchmark prices for the commodities and energy markets.
While confirming the reduction, Joseph Obele, the national public relations officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the diesel price was reduced on May 26. The development which comes amidst a legal dispute on import licenses issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and NNPC.
Obele revealed that the latest price cut is widely seen as a positive impact of increased competition in the downstream petroleum sector.
“Dangote Refinery recently took legal action after NMDPRA granted five import licenses to marketers for the importation of petroleum products,” the PRO said.
“Over the weekend, several of the vessels reportedly arrived, and the refinery reduced the price of AGO commonly known as diesel, by N200. The reduction is from N1,800 to N1,600.”
The downward adjustment could also be connected with the drop in the global oil market, with Brent crude, the international oil benchmark, falling to $95.05 per barrel on Wednesday after closing at $98.04 per barrel a day earlier.
Ibarapa daily news reporter gathered that Oil prices have experienced sharp fluctuations since the outbreak of conflict in the Middle East on February 28, involving the United States (US), Israel, and Iran.
