The Dangote Petroleum Refinery has an Gantry nounced a fresh reduction in the price of Premium Motor Spirit (petrol), cutting its gantry price by N75 per litre in response to easing geopolitical tensions and declining global crude oil prices.
In a circular issued to fuel marketers on Monday, the refinery explained that the adjustment was driven by improved stability in the international oil market following a de-escalation of tensions in the Middle East, which had previously pushed energy costs higher over the past 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.
Under the new pricing structure, the refinery pegged its petrol gantry price at N1,175 per litre, down from N1,250. The coastal price also declined significantly, moving from N1,595,790 per metric tonne to N1,495,215 per metric tonne.
The new rates, according to the refinery, take effect from midnight. It further instructed marketers that “all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 AM, June 16, 2026.”
Reassuring its partners, the refinery added: “We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery.”
Cheapest Supply Pushes Retail Prices Lower
Market data from Petroleumprice.ng indicated that Dangote Refinery currently offers one of the most competitive petrol prices in the market, with some marketers already retailing around N1,240 per litre prior to the latest reduction.
The development is expected to intensify competition in Nigeria’s downstream petroleum sector, with analysts suggesting that lower gantry prices could translate into further relief at the pump if distribution costs remain stable.
Global Oil Market Eases After Conflict De-escalation
The price adjustment comes amid a broader decline in global crude oil benchmarks following diplomatic progress between the United States and Iran over the reopening of the Strait of Hormuz, a critical global shipping route for oil exports.
Oil prices had previously surged to around $83 per barrel, driven by heightened conflict between both nations. At the peak of tensions, crude prices reportedly climbed above $120 per barrel, placing significant pressure on fuel-importing countries like Nigeria.
The conflict, which escalated on February 28, had ripple effects across global energy markets, contributing to sharp increases in domestic fuel prices.
In Nigeria, petrol prices rose from approximately N830 per litre to as high as N1,300 during the crisis period, while diesel and aviation fuel also experienced steep increases.
Signals of Further Relief, but Uncertainty Remains
Following reports of a ceasefire agreement and partial reopening of the Strait of Hormuz, Brent crude prices eased from the $83 per barrel range, reinforcing expectations of additional fuel price reductions in the near term.
BrandIconImage noted that continued stability in the Middle East could push petrol prices as low as N900 per litre, although such projections remain contingent on sustained peace and stable crude supply chains.
However, a refinery official cautioned that while prices may trend downward, existing inventory still includes higher-cost crude, which could slow the pace of further reductions.
For now, consumers and marketers alike are watching closely as global oil dynamics continue to reshape domestic fuel pricing in Nigeria.