ABUJA, Nigeria (VOICE OF NAIJA)- Petrol prices may decline to around N1,200 per litre as the Dangote Petroleum Refinery continues efforts to lower ex-depot rates amid falling global crude oil prices.
Following a peace agreement between the United States and Iran, which has eased tensions in the global oil market, the Dangote refinery reduced its petrol gantry price by N75 per litre, from N1,250 to N1,175.
The move has also prompted other depot operators to cut prices to about N1,180 per litre, according to Petroleumprice.ng.
Despite the reduction at depots, filling stations have yet to reflect the changes at the pumps, with many outlets still selling petrol at about N1,280 per litre.
Marketers say the delay is due to the need to exhaust existing stock purchased at higher prices to avoid losses.
In a circular issued to fuel marketers on Monday, the refinery said the adjustment was prompted by the easing of geopolitical tensions that had driven up energy prices over the last three months.
“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 circular stated.
READ ALSO: Dangote Refinery Reverses Petrol Price To N1,275
The refinery said the new gantry price is N1,175 per litre, while the coastal price per metric tonne has been reduced from N1,595,790 to N1,495,215, with both adjustments taking effect from midnight on Tuesday.
“Kindly note that all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 AM, June 16, 2026,” the circular noted, adding, “We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery.”
The latest price cut comes as global oil prices retreat amid reports of negotiations between the United States and Iran on the reopening of the Strait of Hormuz.
Oil prices, which had risen to around $120 per barrel during the height of the crisis, dropped below $80 per barrel on Tuesday after US President Donald Trump announced a peace deal.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the reduction could bring pump prices down to between N1,200 and N1,250 per litre in Lagos, while consumers in other parts of the country may pay slightly higher rates.
Ukadike explained that marketers are still selling old stock purchased at higher prices and appealed to Nigerians to be patient as the market adjusts.
“This announcement is enabling people who have old stocks to clear out their stocks, not only clearing out their stocks but also enabling them to prepare to take the fresh stocks,” he said.
He further noted that product loading activities often slow whenever the Dangote refinery announces new prices, giving marketers time to dispose of existing inventory.
“Once the Dangote refinery announces a new price, there is a serious pause in loading. And it will enable people who just bought new products to see how they can clear the old stocks within the window of a day or two. Then when the new stocks start coming into the market, the process of supply and price will set in. Definitely, by tomorrow and Friday, people will start adjusting to the new price,” he said.
“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,” he added.
Meanwhile, the spokesman of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, expressed concern that imported petroleum products now appear cheaper than locally refined fuel.
He called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority to grant more licences for fuel imports.
The modest N75 reduction has also drawn criticism from some Nigerians, who argue that it does not adequately reflect the recent sharp decline in crude oil prices.
READ ALSO: Dangote Refinery Begins Direct Jet Fuel Supply To Ethiopian Airlines
Crude oil, the major feedstock for fuel production, surged after hostilities broke out between the United States and Iran on February 28. During the three-month conflict, prices rose above $100 per barrel and at times exceeded $120, pushing fuel costs higher globally.
In Nigeria, petrol prices increased from about N830 per litre to nearly N1,300 per litre during the period, while diesel and aviation fuel also recorded significant price hikes.
With crude oil prices now trending lower, industry stakeholders expect further reductions in domestic fuel prices.
Brent crude, the global benchmark, reportedly fell from $87 per barrel on Sunday to $78 per barrel on Tuesday after both countries announced an agreement to end the conflict and reopen the Strait of Hormuz.
Industry observers say petrol prices could decline further if the peace agreement remains in place and crude prices continue their downward trajectory, although refiners are still processing previously acquired higher-cost crude supplies.