Dangote Petroleum Refinery and several fuel importers have reduced the price of Premium Motor Spirit (PMS), commonly known as petrol, following a decline in global crude oil prices that has intensified competition in Nigeria’s downstream petroleum market.
The latest adjustments came after Brent crude, the international oil benchmark, dropped below $80 per barrel amid easing tensions in the Middle East.
According to reports, crude oil prices have been on a downward trajectory following indications of improved relations between the United States and Iran, which eventually led to the announcement of a peace agreement expected to be signed in Switzerland on Friday. The development has also raised expectations of the reopening of the Strait of Hormuz, a critical global oil shipping route.
As of June 16, 2026, Brent crude was trading at $78.63 per barrel, while West Texas Intermediate (WTI) stood at $75.74 per barrel.
Reflecting the drop in crude prices, Dangote Petroleum Refinery reduced its ex-depot petrol price from ₦1,250 per litre to ₦1,175 per litre. Other major marketers and importers, including Rainoil and Ardova, also lowered their depot prices from ₦1,280 to ₦1,180 per litre.
The price cuts are expected to provide some relief for Nigerians facing rising transportation and living expenses. However, many filling stations in Lagos and other major cities have yet to reflect the reductions at the pumps, with petrol still selling between ₦1,270 and ₦1,300 per litre in several locations.
Marketers Seek Further Reductions
Despite the latest adjustment, petroleum marketers argue that the reductions do not adequately reflect the sharp decline in global crude oil prices.
They noted that Brent crude, which traded above $113 per barrel in May, has fallen significantly in recent weeks. According to industry stakeholders, domestic fuel prices increased rapidly when crude prices surged earlier in the year, and a similar response should occur now that prices are declining.
Speaking on the development, the National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon, described the reduction as insufficient but expressed confidence that petrol prices would continue to fall if crude oil prices maintain their downward trend.
He also advised marketers to avoid excessive stockpiling to prevent potential losses, adding that Brent crude could decline further to around $70 per barrel in the coming days.
The fall in crude prices has provided relief for refiners globally, particularly those operating in import-dependent markets. In Nigeria, the impact is significant because fuel pricing remains closely linked to international crude oil prices and foreign exchange fluctuations despite the country’s status as a major oil producer.
Dangote Refinery, Africa’s largest single-train refinery with a processing capacity of 650,000 barrels per day, has increasingly influenced fuel pricing dynamics since commencing large-scale operations. The facility has significantly reduced Nigeria’s reliance on imported petrol while intensifying competition among fuel suppliers.
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