Nigeria’s fuel market is set for relief as the Dangote Petroleum Refinery & Petrochemicals has rolled back its recent increase in Premium Motor Spirit (PMS), commonly known as petrol, citing a sharp decline in global crude oil prices influenced by easing geopolitical tensions.
The refinery has reduced the ex-gantry price of petrol to N1,200 per litre, representing a N75 drop from the previous N1,275 per litre. The earlier increase had been implemented amid rising international oil prices and supply concerns.
A senior refinery official confirmed the development to our correspondent on Tuesday night, noting that the facility adjusts its pricing based on prevailing international crude oil benchmarks and market conditions.
“The adjustment is in line with global market trends. You are aware of the ongoing tensions in the Middle East and their impact on crude oil prices. These are external factors that directly influence refined product pricing,” the official said, speaking on condition of anonymity due to lack of authorisation to address the matter publicly.
He added that petrol had previously been reviewed upward by N75, a roughly five per cent increase, while diesel had surged by N200 to N1,950 per litre. “These changes reflect the realities of the international market,” he explained.
However, the refinery official told our correspondent on Wednesday morning that the decision to raise petrol prices had now been reversed.
The price cut followed a significant decline in crude oil benchmarks after former United States President Donald Trump announced a conditional two-week ceasefire arrangement with Iran, easing fears of supply disruptions in the Middle East.
Brent crude fell by 13.28 per cent to $94.76 per barrel on Wednesday, while US West Texas Intermediate (WTI) dropped 14.72 per cent to $96.31 per barrel. The declines came as Trump signaled that the United States would suspend planned military action against Iran for two weeks, conditional on the restoration of safe passage through the Strait of Hormuz.
“Yes, the price has been reversed. This follows the current price of crude oil,” the refinery official confirmed in a telephone interview.
The refinery issued a statement confirming the development and countering market speculation about further price increases. According to the statement, the gantry price remains N1,200 per litre, while the coastal price is N1,153 per litre.
“We are maintaining our existing price and have not implemented any new pricing for our customers,” the statement read. It added that the refinery remains committed to ensuring a steady supply across domestic and regional markets.
The development occurs against a backdrop of persistent volatility in Nigeria’s downstream petroleum sector, driven by swings in global oil markets, foreign exchange fluctuations, and supply chain challenges.
Since beginning operations in September 2024, the Dangote refinery has become a dominant player in the domestic fuel market, influencing both pricing and supply patterns nationwide. The facility’s responsiveness to international oil price movements underscores Nigeria’s growing integration with global energy markets following the deregulation of the downstream petroleum sector.