–Trump says war to end soon; Iran vows continuation of missile attacks
–Depot owners, oil marketers remain adamant
–Expect depots, filling stations adjustment later — Expert, PETROAN
By Udeme Akpan, Obas Esiedesa & Ediri Ejoh
LAGOS — The Dangote Petroleum Refinery ,yesterday, reduced its ex-gantry petrol price by N100 per litre to N1,075 per litre from N1,175 per litre, following a drop in crude oil price to $88 per barrel from $110 per barrel.
The refinery also announced that petrol supplied through coastal distribution will now sell at N1, 050 per litre.
Checks by Vanguard showed that crude oil price dropped as US President, Donald Trump declared yesterday that the war with Iran “would end soon”, thus driving down fears of extended disruptions to global oil supply.
The ongoing war involving the United States, Iran, and Israel has shut down oil installations, with the blockade of the Straits of Hormuz by Iran, culminating in reduced oil supply and pushing prices to $110 per barrel, the highest since July 2022.
Speaking from his Doral resort in Miami, Trump described the war in Iran as a “little excursion” that had succeeded “much faster than we thought”.
He said his administration was “looking to keep the oil prices down”, as “they went artificially up because of this excursion.”
Although Trump spoke of ending the war soon, Iranian authorities ruled out talks with the US government, vowing to continue missile attacks on its neighbours.
However, Iran’s foreign minister, Abbas Araghchi, in a swift reaction, said talks with the United States are not on the agenda as the war entered its 11th day.
“I don’t think talking with the Americans would be on our agenda anymore,” Abbas Araghchi told PBS News in an interview, saying Tehran had a “very bitter experience” during previous negotiations with the US.
He said:“We are prepared, we have been prepared to continue attacking them with our missiles as long as needed and as long as it takes.”
These came as a report by Fitch Ratings warned that emerging market economies could face heightened economic and financial pressures as a result of the ongoing conflict involving Iran.
According to Dangote Refinery’s latest pricing template released yesterday, the price of diesel was also revised downward to N1,430 per litre, a N190 reduction from the previous price of N1,620 per litre, offering further relief to consumers and businesses dependent on the fuel.
The company noted that the quoted gantry prices exclude statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Tuesday’s reduction came after a run of sharp upward adjustments. On Monday, the refinery raised petrol prices to N1,175 per litre, up from N995 per litre on March 7 and N874 per litre on March 2, being increases attributed to the surge in global crude oil prices triggered by the ongoing Middle East conflict.
The development aligns with remarks made by the refinery’s Chief Executive Officer, David Bird, who said on March 9 that the Dangote refinery was not insulated from global oil price shocks, given that it sources its crude on international benchmarks.
Vanguard gathered that Brent crude, the global oil benchmark, dipped by over 10.45 per cent to $88 a barrel, while US West Texas Intermediate dropped by 8.58 per cent to $86.77 per barrel.
This was also after ministers of European countries met to examine the release of oil reserves, as part of measures to tame price upswings seen recently in the global market.
Depot owners, oil
marketers remain
adamant
Despite the drop, petrol retail outlets in Abuja, the nation’s capital, yesterday retained the high pump price of petrol implemented the previous day, the fall in the price of crude notwithstanding.
Most marketers who were quick to implement an increase in petrol price twice on Monday, raised the rate from N1,092 per litre to N1,115 in the morning and finally to N1,330 per litre, have continued to retain the hike, despite the reduction.
At filling stations located in the Central Area of the city, Vanguard gathered that NNPC Retail outlets continued to dispense at N1,285 per litre, with AA Rano and AYM Shafa still selling at N1,330 per litre.
Checks on some of the bus stops in Area 8, Garki and Central Area, showed that routes which cost about N1,500 the previous day had dropped to N1,200.
Also, fare from Area 8 to Nyanya, which doubled to N1,000, on Monday evening, has reduced to N800.
Speaking to Vanguard, oil and gas sector governance expert, Mr. Henry Adigun, expressed optimism that the war in the Middle East would end soon.
He warned, however, that “it will take about four weeks from the end of hostilities for crude oil prices to come back to normal”.
More hardship as transport fare soars, generators abandoned
In Lagos, there are indications of ripple effects across all sectors of the economy over the increase in fuel price.
It was gathered that marketers now sell petrol between N1,150 and N1,250 per litre, respectively, a development which saw transport fares going to as high as 30 per cent.
In Ajegunle, Orile, Amukoko and Festac, petrol was sold at N1,225 per litre, while diesel stood at N1,620 per litre, as commuters resorted to trekking, following increase in fares.
Ben Ofufu, a commercial motor cyclist known as Okada, said: “It’s kind of hard for us as overnight, prices shot up. The sad thing is that it will not make sense to customers who had been complaining of hardship before now.”
A private car owner, Mr. Sulaimon Jubril, explained that the price increase has forced him to abandon his car.
“I tell you for certain that today was the first time in days since I bought fuel for my car. For me, fuelling my generator is better than the car because the electricity crisis has worsened,’’ he lamented.
He called on the Federal Government to, as a matter of urgency, wade into the power sector crisis and help Nigerians whose businesses and livelihood depended on electricity.
Expect depots, filling stations adjustment later — Expert, PETROAN
Reacting to the drop in crude price, the Chief Executive Officer, Petroleumprice.ng, Olajide Jeremiah, said the depots and retail outlets had not yet responded by effecting reductions in their prices.
He said: “The news of change in crude oil price and gantry price of Dangote Petroleum Refinery came as a big surprise to the domestic market. Many depots and filling stations are still selling at the old price but there should be downward adjustments before weekend.
“The domestic market will continue to respond to developments in the global market. From all indications, the market will remain very unstable till the end of the current US-Iran conflict, which no one can accurately predict.”
Despite the immediate non-response of depot owners and oil marketers, the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, said petrol price in Nigeria will continue to rise and fall, depending on developments.
Billy Gillis-Harry, National President of PETROAN, commended Dangote Petroleum Refinery for the latest downward price adjustment, adding that depot owners and other operators would follow suit after exhausting their old stocks.
He said: “The refinery has taken the right step. Other operators in the downstream will follow as soon as they finished selling their stocks.”
He emphasised that revamping Nigeria’s refineries for immediate domestic production was critical.
Local refining, the PETROAN president said, would reduce exposure to international market volatility, especially as Nigeria has abundant crude oil resources under the custody of the NNPC.
We need more refineries — CPPE
On his part, the Executive Director, Centre for Promotion of Private Enterprises, CPPE, Dr Muda Yusuf, said: “There is a need for policy priorities for sustaining refining investments. Given the strategic importance of domestic refining to Nigeria’s energy security, external sector stability and industrial development, it is essential that the policy environment remains supportive of investment in the sector.
“Government policy should continue to encourage domestic refining through a coordinated mix of trade policy, fiscal policy and monetary policy measures.
“Priority areas should include ensuring reliable crude supply arrangements, strengthening petroleum distribution infrastructure, introducing tariff protection, encouraging additional refining investments, and promoting export competitiveness for refined petroleum products.”
US, Iran conflict could hit emerging market economies, Fitch warns
Meanwhile, global credit rating agency, Fitch, warned yesterday that merging market economies could face heightened economic and financial pressures as a result of the ongoing conflict involving Iran,.
Fitch, in its report, titled “Iran conflict raises new credit risks for emerging market sovereigns”, highlighted that sustained disruptions to energy supplies from the Gulf could have serious consequences for countries dependent on imports.
The report also warned that remittances, exchange rates, and investor sentiment in affected emerging markets could come under pressure.
“More sustained disruption to energy flows than currently assumed in our baseline scenario could significantly damage global investor sentiment,” Fitch said, noting that such shocks could amplify fiscal pressures and balance-of-payment challenges for vulnerable governments.
The agency emphasised that sovereign credit profiles of emerging markets might be affected if energy costs rose sharply or capital flows became volatile, potentially increasing borrowing costs and straining public finances.
Fitch’s warning underscores the interconnected nature of geopolitical risks and emerging market stability, highlighting the sensitivity of these economies to external shocks in critical sectors as energy.
“We expect this would result in a stronger US dollar and weaken the market for debt issuance, particularly for highly speculative-grade issuers.
‘’Higher energy prices could put upward pressure on inflation, affecting monetary policy decisions globally,” the report said.
Fitch said oil and gas imports were the most direct channel for contagion from the conflict, given its effect on global energy prices.
For larger economies, such as India, net fossil fuel imports are equivalent to 3 per cent or more of GDP.
“The Iran conflict could raise additional challenges for some emerging market sovereigns, through such channels as energy imports, remittances, fiscal subsidies, exchange rates, and access to international finance,” Fitch Ratings said.
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