Dangote Refinery Slashes Petrol Price as Falling Crude Oil Costs Boost Nigerian Fuel Market

SEATTLE (Oil Monster): Nigeria's fuel market received a significant boost after Dangote Petroleum Refinery announced a N75 per litre reduction in the ex-depot price of Premium Motor Spirit (PMS). The move follows a decline in global crude oil prices.

The refinery reduced its gantry price from N1,250 per litre to N1,175 per litre, effective June 16, 2026. The company attributed the price cut to easing geopolitical tensions in the Middle East and the resulting drop in international energy prices. Also, Dangote Refinery reduced its coastal loading price by more than N100,000 per metric tonne.

The adjustment is expected to spur competition among fuel marketers, which in turn may result in lower retail pump prices across the country.

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Global oil prices have come under pressure after reports of a ceasefire agreement between the United States and Iran eased concerns over crude supply disruptions. It must be noted that Brent crude prices have fallen from around $87 per barrel to approximately $83 per barrel.

According to market observers, many marketers were still selling petrol at around N1,240 per litre. The reduction in price by Dangote Refinery is expected to pressure depot operators and import-dependent marketers to lower prices in order to stay competitive in the market.

The lower pump prices could be seen soon if the current dip in global crude oil prices is sustained.