Dangote Petroleum Refinery has reduced the gantry price of Premium Motor Spirit (PMS), popularly known as petrol, by N75 per litre following easing tensions in the Middle East and declining global energy prices.
In a circular issued to fuel marketers on Monday, the refinery announced that the new gantry price has been lowered from N1,250 per litre to N1,175 per litre.
The adjustment will take effect from midnight.
Global Oil Market Influenced the Decision
The refinery attributed the price reduction to the de-escalation of geopolitical tensions in the Middle East, which had significantly impacted global energy prices over the past three months.
The circular stated:
“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.”
In addition to the petrol price cut, the coastal price per metric tonne was reduced from N1,595,790 to N1,495,215.
The refinery also confirmed that pending unloaded gantry volumes would be adjusted to reflect the new pricing structure.
“Kindly note that all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 AM, June 16, 2026.”
It added:
“We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery.”
Dangote Now Offers the Cheapest Petrol
According to Petroleumprice.ng, Dangote Refinery now offers the lowest petrol prices in the market, with many marketers selling the product at approximately N1,240 per litre on Monday.
The latest reduction comes as global crude oil prices continue to retreat following reports of diplomatic progress between the United States and Iran regarding the reopening of the Strait of Hormuz.
Oil Prices Ease After Middle East Peace Efforts
Crude oil prices had surged during the three-month conflict between the United States and Iran that began on February 28.
During the crisis, oil prices climbed above $120 per barrel, leading to higher fuel costs worldwide.
In Nigeria, petrol prices increased from about N830 per litre to approximately N1,300 per litre during the same period.
Diesel and aviation fuel prices also experienced significant increases.
However, oil prices have since declined following announcements of a ceasefire agreement and the reopening of the Strait of Hormuz.
The development has sparked expectations of further reductions in domestic fuel prices.
Petrol Could Drop Further
Reports indicate that petrol prices could decline to as low as N900 per litre in the coming weeks if peace efforts in the Middle East continue to hold.
However, a Dangote Refinery official cautioned that immediate reductions may be limited because the refinery is still processing previously purchased high-cost crude oil.
The official noted that the refinery still has “expensive crude” in storage.
Market analysts say future petrol prices will largely depend on the stability of global crude oil markets and whether geopolitical tensions remain subdued.
Author
