LAGOS, NIGERIA — The Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, to N1,075 per litre, reflecting a N100 drop from the previous price of N1,175 per litre, following a sharp decline in global crude oil prices amid signs that the Middle East conflict may be de-escalating.
The refinery also reduced the price of Automotive Gas Oil (AGO), commonly called diesel, to N1,430 per litre at the gantry, representing a N190 decrease from the prior price of N1,620 per litre
. For coastal distribution, petrol will now sell at N1,050 per litre, with the price differential reflecting additional costs linked to maritime distribution.
The price adjustment came after global crude benchmarks plummeted, with Brent crude dropping to around $88-92 per barrel on Tuesday, down sharply from the $100-114 per barrel range recorded earlier in March when the conflict intensified
. West Texas Intermediate (WTI) crude also fell below $90 per barrel, recording declines of over 6%.
The nosedive in oil prices followed comments from US President Donald Trump suggesting that the war with Iran may be nearing its end, easing fears of prolonged supply disruptions through the strategic Strait of Hormuz.
Reports that the US is considering military action to seize control of the Strait and restore the passage of oil tankers further contributed to traders unwinding long positions.
Additionally, the International Energy Agency (IEA) is considering a record release of emergency oil reserves to stabilise global markets, a move that analysts say could temporarily increase supply and help reduce panic in the market.
Reacting to the development, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Gillis-Harry, described the Dangote Refinery as “our salvation,” especially as the Iran war escalated and showed no sign of abating earlier
. He noted that pricing would always be determined by global market fluctuations, adding, “We hope the deduction will reflect in the pump as soon as we start buying new products”.
Oil & Gas Expert Kelvin Emmanuel explained that the refinery sources less than 50 per cent of its crude from Nigeria, with additional supplies from the US, Brazil, and other countries, exposing it to global price volatility and increased shipping costs, which have now eased with the decline in crude prices.
The reduction marks the first downward adjustment after three consecutive price hikes in less than two weeks, offering some relief to marketers and consumers who had been grappling with rapidly rising fuel costs.
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