The Dangote Petroleum Refinery reduced its ex-gantry petrol price by N100 per litre yesterday to N1,075 per litre from N1,175 per litre following a drop in global crude oil prices to $88 per barrel from $110 per barrel. Petrol supplied through coastal distribution will now sell at N1,050 per litre, the refinery announced.
The price adjustment came after US President Donald Trump declared that the ongoing war with Iran “would end soon,” reducing fears of extended supply disruptions. Despite Trump’s comments, Iranian authorities have ruled out talks with the US and vowed to continue missile s on neighboring countries, as stated by Iranian Foreign Minister Abbas Araghchi.
The conflict in the Middle East had previously pushed crude oil prices to $110 per barrel, the highest since July 2022, due to supply constraints caused by blocked oil installations and the Straits of Hormuz blockade. Brent crude fell over 10 per cent to $88 a barrel, while US West Texas Intermediate dropped to $86.77 per barrel. European ministers have also discussed releasing strategic reserves to ilize prices.
Despite the reduction in gantry prices, most petrol retailers, including NNPC outlets and private marketers in Abuja, retained higher pump prices, with some stations charging between N1,285 and N1,330 per litre. Transport fares and other fuel-dependent costs have surged in response, prompting complaints from commuters and commercial transport operators.
Experts, including Henry Adigun and CEO of Petroleumprice.ng, Olajide Jeremiah, expect domestic price adjustments to follow the refinery’s reduction within the coming days, though full normalization of prices could take about four weeks after hostilities end.
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, assured that downstream operators would align with the Dangote price cut as stocks are sold. PETROAN President Billy Gillis-Harry emphasized the need for more domestic refining capacity to reduce reliance on global oil price fluctuations.
Dr. Muda Yusuf of the Centre for Promotion of Private Enterprises stressed that policy support for domestic refining, reliable crude supply, and infrastructure development are critical for Nigeria’s energy security and economic ility.
Meanwhile, global credit rating agency Fitch warned that emerging market economies could face heightened economic pressures due to sustained disruptions in Gulf oil supply. Energy import-dependent countries may experience fiscal, currency, and financial stress if the conflict escalates or persists.
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