Global oil prices experienced a dramatic increase on Wednesday, rising by over five per cent after dropping to $88 per barrel on Tuesday, according to market data.
Brent crude hit $92.43 per barrel as of 10:56 AM WAT, marking a 5.27% increase, after initially reaching over $100 per barrel on Monday amid ongoing crises in the Middle East. The main US contract, West Texas Intermediate (WTI), surged 5.9% to $88.38 per barrel.
This development followed a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, by Dangote Petroleum Refinery on Tuesday. Anthony Chiejina, Chief Communications Officer of the Dangote Group, confirmed to Channels Television that petrol at the gantry will now sell for ₦1,075 per litre, down from ₦1,175 per litre last week—a ₦100 drop. Petrol supplied through coastal distribution will now sell at ₦1,050 per litre.
The refinery stated that the move reflects global 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 statement explained.
“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.”
