Petrol Price May Drop To ₦1,200 As Dangote Cuts Depot Rate

Marketers of petroleum products have said the pump price of Premium Motor Spirit, popularly called petrol, may drop to about ₦1,200 per litre following a reduction in ex-depot prices led by the Dangote Petroleum Refinery.

Naija News had earlier reported that the refinery slashed its petrol gantry price by ₦75 per litre, from ₦1,250 to ₦1,175, amid declining crude oil prices following a peace deal between the United States and Iran that eased tensions in the global oil market.

The reduction has also forced other depot owners to adjust their prices to about ₦1,180 per litre, according to Petroleumprice.ng.

However, filling stations have yet to reflect the reduction at the pump, as many outlets were still selling petrol at about ₦1,280 per litre on Tuesday. Marketers said the delay was due to the need to clear old stock bought at higher prices.

In a circular to fuel marketers on Monday, Dangote Refinery said the adjustment followed the de-escalation of tensions in the Middle East, which had affected energy prices in recent 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 circular stated.

The refinery said the new gantry price had been fixed at ₦1,175 per litre, while the coastal price per metric tonne was reduced from ₦1,595,790 to ₦1,495,215.

It added that the new rates took effect from midnight on Tuesday.

“Kindly note that all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 AM, June 16, 2026.

“We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery,” it added.

Crude Oil Prices Fall

The latest price cut comes amid easing tension in the global oil market following reports of negotiations between the United States and Iran over the reopening of the Strait of Hormuz.

Oil prices, which had risen to about $120 per barrel at the height of the crisis, dropped below $80 per barrel on Tuesday after US President Donald Trump announced a peace deal.

According to Oilprice.com, Brent crude, the global benchmark, fell from $87 on Sunday to $78 per barrel on Tuesday after both countries said they had reached an agreement to end the conflict.

The decline is expected to ease pressure on domestic fuel prices in Nigeria, where petrol prices rose sharply during the crisis.

According to Punch, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, in an interview, said petrol could sell between ₦1,200 and ₦1,250 per litre in Lagos once new stock enters the market.

He said prices may remain higher in faraway locations because of transportation and logistics costs.

According to him, marketers have not immediately reduced pump prices because many outlets still have old stock bought at higher rates.

“This announcement is enabling people who have old stocks to clear out their stocks, not only clearing out their stocks but also enabling them to prepare to take the fresh stocks,” Ukadike said.

He explained that loading activities usually slow down whenever Dangote refinery announces a new price, giving marketers time to exhaust older products.

“Once the Dangote refinery announces a new price, there is a serious pause in loading. And it will enable people who just bought new products to see how they can clear the old stocks within the window of a day or two. Then when the new stocks start coming into the market, the process of supply and price will set in. Definitely, by tomorrow and Friday, people will start adjusting to the new price.

“The price is not static, and it depends on where you are. But I know that products will start selling between ₦1,200 and ₦1,250 in Lagos and more in other far-away locations,” he added.

Retailers Seek More Import Licences

However, the spokesman for the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Joseph Obele, expressed concern that imported petroleum products appeared cheaper than locally refined fuel.

He called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to issue more licences for fuel imports.

Some Nigerians on social media also criticised the ₦75 reduction, saying it did not fully reflect the recent drop in crude oil prices.

Crude oil, the main feedstock for fuel production, had risen sharply after hostilities broke out between the United States and Iran on February 28.

During the three-month conflict, prices climbed above $100 per barrel and, at some points, exceeded $120 per barrel, pushing up fuel prices in Nigeria.

Petrol prices rose from about ₦830 per litre to around ₦1,300 per litre during the period, while diesel and aviation fuel also recorded significant increases.

With crude prices now falling, marketers said the latest adjustment by the Dangote Refinery could bring relief to consumers if the trend continues.