A sharp decline in global crude oil prices following the recent peace agreement between the United States and Iran has begun to reflect in Nigeria’s domestic fuel market, with the Dangote Petroleum Refinery announcing a fresh reduction in the ex-gantry price of Premium Motor Spirit (PMS), popularly known as petrol.
The refinery disclosed on Thursday, June 25, 2026, that the ex-depot price of petrol has been reduced by ₦50 per litre, bringing the new rate to ₦1,125 per litre from the previous ₦1,175 per litre.
The latest adjustment was confirmed by the spokesperson for the Dangote Group, Anthony Chiejina, who also announced a reduction in the refinery’s coastal petrol supply price. According to him, the coastal price was cut from ₦1,495,215 per metric tonne to ₦1,428,165 per metric tonne as part of efforts to lower costs for downstream operators.
The reduction follows a major slump in international crude oil prices, with Brent crude falling to between $69 and $73 per barrel, its lowest level since tensions escalated in the Middle East earlier this year.
Market analysts attribute the decline to the ceasefire agreement signed by the United States and Iran, which brought an end to a three-month conflict that began on February 28, 2026. The agreement led to the partial reopening of the Strait of Hormuz, a key global shipping route, removing the war-risk premium that had previously pushed Brent crude prices above $120 per barrel.
In a circular issued to marketers, the refinery stated that the new pricing structure reflects prevailing realities in the global oil market following the easing of geopolitical tensions in the Middle East. It added that the decision demonstrates its commitment to transferring production cost savings to domestic downstream partners.
The latest reduction is the second price adjustment by the refinery within two weeks. On June 16, the company lowered its petrol gantry price by ₦75 per litre, reducing it from ₦1,250 to ₦1,175 per litre. At the same time, it cut diesel and aviation fuel prices by ₦100 per litre each.
With Thursday’s adjustment, the refinery has reduced the price of petrol by a cumulative ₦125 per litre in less than a fortnight.
Under the current pricing structure, petrol now sells at ₦1,125 per litre at the gantry, while diesel and aviation fuel remain at ₦1,600 per litre and ₦1,450 per litre respectively, reflecting reductions of ₦100 per litre each over the same period.
Despite the downward review, motorists may not immediately experience lower pump prices, as many filling stations are still dispensing products purchased at earlier, higher rates.
Retail petrol prices across several parts of the country, including Abuja and major cities such as Ibadan, currently range between ₦1,241 and ₦1,305 per litre.
Commenting on the development, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, appealed to consumers to be patient, noting that marketers are still trying to exhaust old stock acquired before the recent market correction.
According to him, whenever Dangote Refinery announces a new price template, there is usually a brief pause in product loading to allow operators holding previously purchased stock to sell off existing supplies.
He expressed optimism that the newly priced products would begin entering the retail market almost immediately, leading to gradual reductions in pump prices from Friday and throughout the weekend.
With crude oil prices expected to remain stable under the new Middle East peace arrangement, industry analysts believe petrol prices could continue to decline in the coming weeks, with some projections suggesting a possible return to the ₦800–₦900 per litre range, potentially reversing much of the inflationary pressure created by the oil market disruptions witnessed earlier in 2026.
