- The Dangote Petroleum Refinery has slashed its premium motor spirit gantry price by N75 per litre, dropping the rate from N1,250 to N1,175, effective midnight on Tuesday.
- The domestic fuel price cut follows a significant de-escalation of tensions in the Middle East and the signing of a historic peace deal between the United States and Iran, which crashed Brent crude prices below $80 per barrel.
- Independent petroleum marketers are expected to lower retail pump prices to between N1,200 and N1,250 in Lagos within forty-eight hours, explaining that current higher rates are due to the technical need to clear out expensive older inventory.
Independent oil marketers across Nigeria have projected a noticeable drop in retail petrol prices to approximately N1,200 per litre in the coming days.
Eko Hot Blog reports that this impending downward adjustment is heavily driven by the management of the Dangote Petroleum Refinery, which has taken the lead in cutting down domestic energy costs by slashing its premium motor spirit ex-depot gantry price.
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In an official operational circular distributed to petroleum distributors, the refinery management confirmed a reduction of N75 per litre, moving its gantry pricing down from N1,250 to N1,175, while simultaneously lowering its coastal price per metric tonne to reflect easing overhead costs.
The strategic price intervention by Africa’s largest single-train refinery directly mirrors the rapid corrections currently unfolding across the international crude oil markets.
Following a high-stakes geopolitical peace accord brokered between the United States and Iran, which included the full reopening of the vital Strait of Hormuz shipping lane, global energy pressures have softened significantly.
Brent crude oil benchmarks, which had previously spiked well above $120 per barrel during the peak of the three-month Middle Eastern conflict, plummeted sharply down to $78 per barrel, dragging down global production and feedstock expenditures.
Despite this wholesale price crash, retail filling stations across major Nigerian cities have maintained their pump prices at an average of N1,280 per litre.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, appealed for public patience, explaining that retail outlets cannot instantly slash pump prices without incurring devastating financial losses on heavily priced older stocks.
Ukadike noted that a brief pause in product loading always follows a major price review, allowing marketers a necessary window of a day or two to clear out existing inventories before fresh, cheaper supplies hit the pumps by Friday.
While the domestic rate cuts bring initial relief to consumers who watched petrol prices jump from N830 to N1,300 over the last quarter, some retail operators believe the reductions should run much deeper.
The leadership of the Petroleum Products Retail Outlet Owners Association of Nigeria has urged regulatory authorities to license more independent importers, claiming that certain imported refined products currently land cheaper than locally refined fuel.
However, Dangote refinery officials clarified that while further price drops remain highly possible as the global market steadies, the facility is currently still processing expensive crude oil batches that were previously purchased at peak conflict rates.
