Petrol Price Set to Crash to N1,200/litre Within Days After Dangote Refinery Rate Cuts
- The Dangote Petroleum Refinery has reduced its petrol ex-depot price from N1,250 to N1,175 per litre following a decline in global crude oil prices
- Fuel marketers say pump prices could fall in Lagos within days, although many filling stations are still selling old stock at higher prices
- Stakeholders expect further reductions if crude oil prices continue to decline, but some operators argue that fuel prices should be dropping faster
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Petrol prices across Nigeria could soon decline to around N1,200 per litre following a fresh reduction in ex-depot prices by the Dangote Petroleum Refinery, according to industry marketers.
The refinery recently lowered its gantry price for Premium Motor Spirit (PMS) by N75 per litre, reducing it from N1,250 to N1,175.
Source: UGC
The adjustment comes as global crude oil prices continue to fall after a peace agreement between the United States and Iran eased tensions in the Middle East.
The latest move has also prompted several private depot operators to slash their prices to about N1,180 per litre, according to data from Petroleumprice.ng.
Filling stations yet to reflect new prices
Despite the reduction at the depot level, most filling stations have not adjusted their pump prices. Petrol was still being sold for about N1,280 per litre in many locations as of Tuesday.
Industry stakeholders explained that marketers are first trying to clear existing inventories purchased at higher prices before introducing lower retail rates. Selling old stock at the new prices, they noted, would result in significant losses.
In a notice issued to fuel marketers, Dangote Refinery said the price review was influenced by the calming of geopolitical tensions that had driven up energy costs in recent months.
The company also announced a reduction in its coastal price per metric tonne from N1.595 million to N1.495 million, with the new rates taking effect from midnight on June 16, 2026.
Marketers predict further relief for consumers
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said consumers should expect lower pump prices within days as fresh supplies enter the market.
Ukadike said:
“The price is not static, and it depends on where you are. But I know that products will start selling between N1,200 and N1,250 in Lagos and more in other far-away locations.”
Ukadike explained that whenever Dangote Refinery announces a price reduction, fuel loading activities often slow temporarily, allowing marketers to dispose of existing stock before purchasing at the new rate.
He expressed confidence that retail outlets would begin reflecting the lower prices within a few days as newly purchased products reach filling stations.
Falling crude oil prices drive market changes
The latest adjustment follows a sharp decline in global oil prices after reports emerged that the United States and Iran had reached an agreement to end months of hostilities and reopen the Strait of Hormuz.
Crude oil prices, which had climbed above $120 per barrel during the height of the conflict, have since dropped significantly. Reports from Oilprice.com indicate that Brent crude fell from about $87 per barrel on Sunday to roughly $78 per barrel by Tuesday.
The three-month crisis had triggered substantial increases in fuel costs worldwide. In Nigeria, petrol prices surged from around N830 per litre to nearly N1,300 per litre during the period, while diesel and aviation fuel also became more expensive.
How US-Iran-Israel war affects Nigeria's economy
Meanwhile, Legit.ng earlier reported that the escalating tensions in the Middle East are sending concerns through Nigeria's economy, with fuel prices alleged to skyrocket.
Economist Paul Alaje warns that the conflict could push petrol prices to higher levels, spelling trouble for households and businesses alike.
Nigerians who listened to the economist speaking during a recent interview had different things to say in the comments section.
Source: Legit.ng
