The Dangote Petroleum Refinery has cut its petrol ex-depot price from N1,250 to N1,175 per litre, prompting expectations that pump prices could fall to around N1,200 per litre within days, according to fuel marketers. The reduction follows a decline in global crude oil prices after a peace agreement between the United States and Iran eased Middle East tensions.
Depot Price Reduction
The refinery lowered its gantry price for Premium Motor Spirit (PMS) by N75 per litre. Several private depot operators have also reduced their prices to about N1,180 per litre, as reported by Petroleumprice.ng. However, most filling stations have not yet adjusted their pump prices, with petrol still selling for about N1,280 per litre in many locations as of Tuesday.
Marketers Clear Old Stock
Industry stakeholders explained that marketers are first clearing inventories purchased at higher prices before introducing lower retail rates. Selling old stock at new prices would result in significant losses. In a notice to fuel marketers, Dangote Refinery said the price review was influenced by calming geopolitical tensions that had driven up energy costs. The company also reduced its coastal price per metric tonne from N1.595 million to N1.495 million, effective from midnight on June 16, 2026.
Consumers to Expect Lower Prices
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said consumers should expect lower pump prices within days as fresh supplies enter the market. He stated: "The price is not static, and it depends on where you are. But I know that products will start selling between N1,200 and N1,250 in Lagos and more in other far-away locations."
Ukadike explained that whenever Dangote Refinery announces a price reduction, fuel loading activities slow temporarily, allowing marketers to dispose of existing stock before purchasing at the new rate. He expressed confidence that retail outlets would reflect lower prices within a few days.
Crude Oil Prices Drive Changes
The adjustment follows a sharp decline in global oil prices after reports that the US and Iran reached an agreement to end hostilities and reopen the Strait of Hormuz. Crude oil prices, which had climbed above $120 per barrel during the conflict, have dropped significantly. Brent crude fell from about $87 per barrel on Sunday to roughly $78 per barrel by Tuesday, according to Oilprice.com. The three-month crisis had triggered substantial fuel cost increases worldwide. In Nigeria, petrol prices surged from around N830 per litre to nearly N1,300 per litre, while diesel and aviation fuel also became more expensive.
Impact on Nigeria's Economy
Meanwhile, Legit.ng earlier reported that escalating Middle East tensions raised concerns for Nigeria's economy, with fuel prices skyrocketing. Economist Paul Alaje warned that the conflict could push petrol prices higher, spelling trouble for households and businesses. Nigerians who listened to the economist during a recent interview shared varied comments.
