Dangote, Marketers Rush to Lower Petrol Prices as Global Oil Rates Plunge 15 Per Cent
- Brent crude prices plummeted over 15% due to the US-Iran ceasefire, causing petrol price reductions in Nigeria
- Dangote Refinery lowered ex-depot petrol price from N1,275 to N1,200 per litre amid global cost decline
- Experts cautioned that the ceasefire's temporary nature might lead to future fuel price volatility in Nigeria
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian motorists, long battered by volatile fuel costs, received unexpected relief on Wednesday, April 8, 2026, as Brent crude, the benchmark for Nigerian oil, plunged more than 15% to below $95 per barrel.
The sharp drop, triggered by a surprise two-week ceasefire between the US and Iran, prompted Africa’s largest refinery and downstream operators to quickly lower petrol prices.
Source: Getty Images
Dangote Refinery reverses petrol hike
Dangote Refinery reversed its recent hike, bringing its ex-depot price down from N1,275 to N1,200 per litre.
The refinery had previously denied implementing the increase, but the adjustment now aligns with falling global crude costs.
Major depot owners and fuel marketers followed suit, reflecting the rapid transmission of international price signals in Nigeria’s deregulated market.
According to real-time data from PetroleumPriceNG and checks by Legit.ng, several key depots adjusted prices downward on the same day: Soroman and Sobaz at N1,230 per litre, Rainoil at N1,220, and Dangote itself at N1,214.
NNPC retail outlets in Abuja cut pump prices to N1,295 from N1,361, while Lagos attendants confirmed similar reductions at the retail level.
Trump’s ceasefire deal sends oil tumbling
The dramatic sell-off followed President Donald Trump’s announcement of a conditional two-week ceasefire with Iran, just hours before a self-imposed deadline that had threatened widespread strikes on Iranian infrastructure.
Trump described the agreement as a “double-sided CEASEFIRE” on social media, after earlier warning that “a whole civilisation will die tonight” if demands were unmet.
The deal centres on the reopening of the Strait of Hormuz, through which about 20% of global daily oil supply passes, for safe transit.
Iran’s foreign minister, Abbas Araqchi, confirmed that attacks would halt if strikes against the country stopped, with limited and controlled passage expected within days ahead of US-Iran talks in Pakistan.
Analysts noted the immediate market reaction. Brent crude futures fell $18.27, or 15.72%, to $92.26 per barrel by mid-afternoon Nigerian time, while West Texas Intermediate dropped $20.48, or 18.13%, to $92.47.
UBS analyst Giovanni Staunovo attributed the plunge to investors pricing in de-escalation and increased supply potential.
Fragile truce and lingering uncertainty
Experts caution that the relief may be short-lived. The ceasefire is temporary, designed to allow negotiations toward a permanent peace.
Tamas Varga of PVM Oil noted that 10–13 million barrels per day of stranded crude could gradually return to the market, but this depends on whether the truce holds.
In Nigeria, the episode underscores the double-edged reality of fuel deregulation.
Between January and March 2026, Dangote Refinery adjusted petrol prices nine times, six increases and three cuts, pushing the ex-depot rate from N699 to N1,200, a nearly 72% surge.
At its recent peak, consumers in Abuja paid between N1,290 and N1,350 per litre at the pump.
The 650,000-barrels-per-day Dangote Refinery has become the dominant price setter since operations ramped up in late 2024.
However, it continues to grapple with crude supply constraints, including a reported shortfall of about 79.53 million barrels between October 2025 and mid-March 2026.
Source: Getty Images
While Nigeria’s gross foreign reserves climbed to a 13-year high of $50.45 billion in February 2026, offering some macroeconomic buffer, analysts warn that motorists remain exposed to global volatility.
The current respite is welcome, but the fragile Middle East truce and ongoing domestic supply challenges mean prices could swing again once the two-week window closes.
For now, Nigerian drivers can breathe easier, but not for too long.
Marketers release new petrol depot prices
Legit.ng earlier reported that depot owners raised ex-depot prices for Premium Motor Spirit (PMS), reflecting sharp increases in global crude oil costs triggered by the ongoing US-Israeli-Iran conflict and disruptions in the Strait of Hormuz.
Petrol prices at Nigerian depots have climbed more than 35% since the conflict escalated on February 28, 2026.
As of April 7, 2026, Brent crude traded as high as $110.4 per barrel, while West Texas Intermediate (WTI) reached $115 per barrel. Murban crude was reported at around $118.7 per barrel, according to data from OilPrice.com.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
