Diesel, Petrol Gets Cheaper As Crude Oil Crashes

Diesel, Petrol Gets Cheaper As Crude Oil Crashes

Petrol and diesel prices have started dropping in Nigeria as global crude oil prices decline after tensions in the Middle East eased.

The move was led by the Dangote Petroleum Refinery, which lowered its petrol, diesel and aviation fuel prices, raising hopes of more relief for consumers in the coming weeks.

The refinery reduced its petrol gantry price by N75 per litre, bringing it down from N1,250 to N1,175. Diesel and aviation fuel prices were also cut by N100 per litre each.

The adjustments followed a sharp fall in crude oil prices, which dropped from about $120 per barrel during the US-Iran crisis to around $78 after both sides reached a peace agreement.

Despite the reductions, many filling stations have yet to reflect the new prices at the pump. Marketers said they are still selling products bought at higher rates and need time to clear old stock.

The Independent Petroleum Marketers Association of Nigeria explained that sudden price cuts could leave dealers with heavy losses, making gradual adjustments the preferred option.

Private depot operators have also started lowering prices to stay competitive. Industry players believe fuel costs could fall further if crude oil prices remain stable.

However, refinery sources noted that expensive crude purchased during the crisis is still being processed, meaning additional reductions may take time before reaching consumers nationwide.