Nigerians may soon enjoy lower pump prices for petrol following a fresh reduction in the ex-depot price of Premium Motor Spirit (PMS) by Dangote Petroleum Refinery, which slashed its gantry price by N75 per litre amid easing tensions in the global oil market.
The refinery announced on Monday that the gantry price of petrol has been reduced from N1,250 per litre to N1,175 per litre, while the coastal price per metric tonne was reviewed downward from N1,595,790 to N1,495,215.
The adjustment, according to a circular issued to fuel marketers, takes effect from midnight on June 16, 2026.
Dangote Refinery attributed the price cut to the recent de-escalation of tensions in the Middle East, which had driven up global energy prices over the past three months.
“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 company stated.
The refinery further disclosed that all outstanding unloaded gantry volumes would be repriced at the new rate from the effective date.
The development is expected to provide relief to consumers and marketers, many of whom have grappled with rising fuel costs since the outbreak of hostilities between the United States and Iran earlier in the year.
Industry data indicated that petrol sourced from the refinery was selling for around N1,240 per litre on Monday, making the latest adjustment one of the most significant price reductions in recent months.
The refinery’s decision followed renewed optimism in the international oil market after reports emerged of a peace agreement between the United States and Iran, paving the way for the reopening of the Strait of Hormuz, a critical global oil shipping route.
Crude oil prices, which had surged dramatically during the conflict, have begun to retreat. During the three-month crisis, crude prices climbed above $120 per barrel, triggering sharp increases in refined petroleum products worldwide.
In Nigeria, petrol prices rose from about N830 per litre before the conflict to nearly N1,300 per litre at the height of the crisis, while diesel and aviation fuel prices also recorded substantial increases.
However, the signing of a ceasefire agreement between Washington and Tehran has eased fears of prolonged disruptions to global oil supplies, leading to a steady decline in crude prices.
Market analysts believe the downward movement in crude prices could create room for additional reductions in domestic fuel prices in the coming weeks.
There is growing optimism among consumers and industry operators that petrol prices could fall further if stability returns fully to the Middle East and crude oil continues its downward trajectory.
Some observers have projected that pump prices could decline to around N900 per litre should the peace deal hold and international oil prices remain subdued.
Nonetheless, industry experts caution that any substantial reduction may take time to reflect at filling stations due to existing inventories purchased at higher crude oil prices.
A senior official of the Dangote Refinery noted that while further reductions are possible, the company still holds stocks produced from crude acquired during the period of elevated global prices.
The latest price review is expected to intensify competition in the downstream petroleum sector and raise expectations among Nigerians who have endured months of rising transportation and energy costs.
For many households and businesses struggling with inflationary pressures, the refinery’s decision offers a glimmer of hope that fuel costs – and by extension, the prices of goods and services – may begin to ease in the months ahead.