Petrol prices may ease as Dangote cuts ex-depot rate by ₦75
Falling crude oil prices and easing tensions in the Middle East are beginning to filter into Nigeria's fuel market.
Nigerians could soon pay less for petrol after Dangote Petroleum Refinery reduced its ex-depot price by ₦75 per litre, a move that signals the first major easing of fuel costs since the recent spike triggered by geopolitical tensions in the Middle East.
The refinery announced that its gantry price for Premium Motor Spirit has been reduced from ₦1,250 per litre to ₦1,175 per litre, with the new rate taking effect immediately. According to a circular issued to fuel marketers, the adjustment follows improving conditions in the global energy market.
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 refinery stated.
For consumers, the development could mark the beginning of a broader downward trend in fuel prices, provided current conditions in the international oil market are sustained.
Over the past three months, rising hostilities in the Middle East have pushed crude oil prices sharply higher, sending shockwaves through energy markets worldwide. Because crude oil remains the primary raw material used in fuel production, the increase translated into higher petrol, diesel and aviation fuel prices across many countries, including Nigeria.
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At the peak of the crisis, crude oil traded above US$120 per barrel, forcing refiners and fuel marketers to absorb significantly higher costs. In Nigeria, petrol prices climbed from around ₦830 per litre earlier in the year to levels approaching ₦1,300 per litre in some locations, adding further pressure on households already battling inflation and rising living expenses.
The situation has begun to change following reports of ongoing negotiations between the United States and Iran over the reopening of the Strait of Hormuz, one of the world’s most important oil shipping routes. The prospect of improved crude supply has eased concerns in global markets and contributed to a decline in oil prices.
As crude prices retreat, refiners are beginning to adjust their pricing structures accordingly.
Industry observers say Dangote’s latest reduction reflects the close relationship between international crude oil prices and domestic fuel costs. While the refinery’s lower ex-depot price does not automatically translate into immediate retail price cuts, it creates room for marketers to reduce pump prices in the coming days and weeks.
The refinery also announced that marketers with outstanding volumes would benefit from the revised pricing.
“Kindly note that all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 AM, June 16, 2026,” the circular stated.
The company added: “We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery.”
The extent of any reduction will depend on several factors, including existing inventory costs, transportation expenses and market competition. Some fuel marketers are still holding products purchased when crude oil prices were significantly higher, which could slow the pace of retail price adjustments.
Even so, the latest move is likely to fuel expectations of further reductions if global oil prices continue their downward trajectory.
For many Nigerians, the possibility of cheaper petrol extends beyond transport costs. Fuel prices influence everything from food distribution and logistics to electricity generation and business operating expenses. Any sustained decline could therefore provide relief across multiple sectors of the economy.
Whether pump prices eventually move closer to the ₦900 per litre mark being discussed by some industry players will depend largely on the direction of global oil markets in the weeks ahead. One factor that could slow further reductions is the cost of crude already purchased by refiners when prices were significantly higher, meaning the full impact of falling oil prices may take time to filter through the market.
For now, the reduction by Dangote Refinery offers the clearest indication yet that the fuel price surge triggered by the Middle East crisis may finally be starting to reverse.
