Nigeria’s Dangote Petroleum Refinery has reduced the ex-depot price of petrol by 75 naira (about 5 US cents) per litre, citing a decline in global energy prices following the easing of tensions in the Middle East, a move expected to provide some relief to consumers and businesses grappling with high fuel costs.
In a notice issued to fuel marketers late Monday, the refinery said the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, had been cut from 1,250 naira (US$0.92) per litre to 1,175 naira (US$0.86) per litre, effective from midnight on June 16.
The coastal price per metric tonne was also reduced from 1.596 billion naira (about US$1.17 million) to 1.495 billion naira (about US$1.10 million), according to the circular.
“Following the de-escalation of tensions in the Middle East, which has impacted energy prices, we wish to inform you that we have reviewed our premium motor spirit gantry/coastal price,” the refinery said.
The company added that all outstanding unloaded gantry volumes would be repriced at the new rate from the effective date.
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The reduction comes after international crude oil prices retreated amid reports of a ceasefire agreement between the United States and Iran and efforts to reopen the Strait of Hormuz, a critical shipping route through which a significant share of global oil supplies passes.
Global oil markets had experienced months of volatility after hostilities erupted between Washington and Tehran in late February. During the conflict, crude prices surged above US$120 per barrel, driving up fuel prices worldwide and putting additional pressure on import-dependent economies.
In Nigeria, Africa’s largest oil producer, petrol prices climbed sharply during the period, rising from about 830 naira (US$0.61) per litre to as much as 1,300 naira (US$0.96) per litre in some parts of the country. Prices of diesel and aviation fuel also increased significantly.
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The latest adjustment by the Dangote refinery is expected to influence retail fuel prices across Nigeria, where marketers often use the refinery’s pricing as a benchmark.
Industry analysts said the reduction could trigger a new round of competition among fuel suppliers and potentially lower pump prices if crude oil prices continue to decline.
According to industry monitoring platform Petroleumprice.ng, petrol supplied by the Dangote refinery had already become one of the cheapest sources available to marketers, many of whom were selling the product at around 1,240 naira (US$0.91) per litre before the latest reduction.
The price cut has also renewed speculation that petrol could become significantly cheaper in the coming weeks if stability returns to global energy markets.
Local media reports have suggested that pump prices could fall to as low as 900 naira (US$0.66) per litre should the ceasefire between the United States and Iran hold and crude oil prices continue their downward trend.
Oil prices extended losses on Monday after both countries confirmed they had reached an agreement aimed at ending the conflict and restoring normal shipping through the Strait of Hormuz.
The decline in crude prices has raised expectations of lower energy costs for consumers and businesses across Africa’s most populous nation, where fuel remains a key driver of transportation and production expenses.
However, industry experts caution that the impact of lower crude prices may not be immediate. Refiners and marketers often hold inventories purchased at higher costs, meaning reductions at the pump could take time to materialise fully.
A refinery official quoted by local media said that while further price reductions remain possible, the company must also take into account existing stock acquired when crude oil prices were significantly higher.
For many Nigerians facing persistent inflation and high living costs, any reduction in fuel prices would be welcomed as a sign of easing economic pressure and could help moderate transport fares and other fuel-dependent expenses.
