This post was originally published on this site.
Dangote Refinery has explained that petrol prices cannot immediately follow declines in global crude oil prices for several reasonsThe refinery said it has reduced its ex-depot petrol price four times in one month, cutting more than N200 per litreDangote added that Nigerians could see further reductions in petrol prices, provided international oil market conditions remain favourable
Legit.ng journalist Victor Enengedi has over a decade’s experience covering energy, MSMEs, technology, banking and the economy.
Dangote Petroleum Refinery has explained why petrol prices in Nigeria do not immediately reflect declines in international crude oil prices, revealing that it spent over $4.48 billion on crude oil purchases within the last two months.
The 650,000 barrels-per-day refinery said the cost of processing crude already purchased at higher prices largely determines the price of Premium Motor Spirit (PMS), rather than daily fluctuations in global benchmark prices.
Dangote Explains Why Petrol Prices Lag Global Crude Decline Despite Recent CutsSource: Getty
