The Dangote Petroleum Refinery lowered the ex-depot pricing of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) on Tuesday as crude prices plummeted below $80 per barrel, claiming that the move was part of an effort to lower the cost of petroleum products.

The refinery lowered the price of gasoline from N1,215 to N1,165 per litre (a N50 reduction) and diesel from N1,650 to N1,570 per litre (an N80 reduction) under the new pricing system.

As expectations of an agreement between the US and Iran to reopen the Strait of Hormuz grew, the price of Brent crude, the global benchmark for oil prices, dropped by over 5% to less than $80 per barrel on Tuesday.

Senior US officials reported that negotiations with Iran had advanced, boosting the possibility that commercial shipping across the crucial canal may restart as early as this week. This was followed by the decrease.

Iran has a "50-50" chance of reaching an agreement on the Strait of Hormuz by Friday, according to a senior Gulf official.

The Dangote Group said in a statement on Wednesday that the price review was intended to improve energy affordability, improve access to refined petroleum products, and support economic activities throughout Nigeria, reflecting the decline in crude oil prices from a high of $100 per barrel last week to $79.

The refinery claims that the action demonstrates its dedication to offering "affordable, high-quality petroleum products to the Nigerian market." It further stated that it was still dedicated to maintaining a steady supply while utilizing operational efficiency to provide value to stakeholders, companies, and customers.

When market conditions allow, the company promised to keep passing on the advantages of increased operating efficiencies to customers.

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