Global oil prices surged on Wednesday, rising by more than five per cent a day after slipping to about $88 per barrel, according to market data.
The international benchmark, Brent Crude Oil, climbed to $92.43 per barrel as of 10:56 a.m. WAT, reflecting a 5.27 per cent increase. The benchmark had earlier crossed the $100 per barrel mark on Monday amid escalating tensions in the Middle East.
Similarly, the main United States benchmark, West Texas Intermediate (WTI), rose by 5.9 per cent to $88.38 per barrel.
The development came shortly after the Dangote Petroleum Refinery announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol.
The Chief Communications Officer of Dangote Group, Anthony Chiejina, said on Tuesday that the refinery had cut the gantry price of petrol to ₦1,075 per litre from ₦1,175 per litre recorded last week, representing a ₦100 reduction.
He added that petrol supplied through coastal distribution channels would now sell at ₦1,050 per litre.
The refinery explained that the price adjustment reflects movements in global crude 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,” the company said in a statement.
“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 reaffirmed its commitment to strengthening national energy security while aligning its operations with prevailing economic realities.
The reduction marks the first downward adjustment in petrol prices after three successive increases that had significantly pushed up the cost of the product in recent weeks.
