Dangote refinery cuts fuel pump cost by 75 naira per liter

Dangote Petroleum Refinery has slashed the gantry price of Premium Motor Spirit, also known as petrol, by a whopping N75 per litre, in a move that is set to bring relief to fuel marketers and consumers alike.

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This price adjustment, which was announced in a circular to fuel marketers on Monday, is a direct result of the easing tensions in the Middle East, which had driven up energy prices over the past three months.

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The refinery's circular stated that the new gantry price now stands at N1,175 per litre, down from the previous price of N1,250, while the coastal price per metric tonne has been reduced from N1,595,790 to N1,495,215.

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The refinery also announced that the new rates will take effect from midnight, and that all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 AM, June 16, 2026.

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Dangote Petroleum Refinery expressed its appreciation for the continued patronage of its customers and assured them of its commitment to reliable product supply and excellent service delivery.

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As a result of this price reduction, the Dangote refinery is now the cheapest source of petrol, with many marketers selling it for around N1,240 on Monday, according to Petroleumprice.ng.

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

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Oil prices, which had surged to about 83 per barrel after President Trump announced the signing of a deal, are now retreating, with crude oil prices having risen sharply since the outbreak of hostilities between the United States and Iran on February 28.

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During the three-month conflict, crude prices climbed above 120 per barrel, triggering higher fuel prices, with petrol prices in Nigeria rising from about N830 per litre to around N1,300 per litre during the period.

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With crude prices now retreating, the adjustment by the Dangote refinery is expected to bring further relief in domestic fuel prices, which had also seen significant increases in diesel and aviation fuel prices.

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Oil prices continued their downward trend on Monday, following the signing of a ceasefire agreement between the United States and Iran to end hostilities in the Middle East and reopen the Strait of Hormuz, with Brent crude dropping from 83 per barrel on Monday.

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The US and Iran announced that they had reached an agreement on Sunday to end the war, a development that further pushed down oil prices, with President Donald Trump announcing the signing of the peace deal and a partial reopening of the Strait of Hormuz.

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The PUNCH reported on Monday that petrol could drop to as low as N900 per litre in the coming days if the peace deal between the United States and Iran materialises, with oil prices crashing further, fuelling speculation of more fuel price reductions.

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Nigerians are eagerly waiting for more drops in petrol prices, although a Dangote Petroleum Refinery official cautioned that the refinery still had "expensive crude" in its tanks, which could impact the price of petrol.

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A Dangote Petroleum Refinery official suggested that petrol could fall to N900 per litre, but this would depend on various factors, including the full de-escalation of the crisis in the Middle East.