Petrol may drop to N1,200 amid price cuts

Marketers of petroleum products say petrol prices may drop to about N1,200 per litre as the Dangote Petroleum Refinery leads efforts to reduce ex-depot rates. As crude prices continue to fall following a peace deal signed between the United States and Iran, the Dangote Petroleum Refinery has slashed its petrol gantry price by N75 per litre, from N1,250 to N1,175. This has prompted other depot owners to lower their prices to about N1,180, according to Petroleumprice.ng. However, filling stations have yet to adjust pump prices, as many still sell petrol at around N1,280, as observed on Tuesday. Marketers attribute this to the need to sell off old stock to avoid losses. In a circular to fuel marketers on Monday, the Dangote refinery said the price adjustment followed the de-escalation of tensions in the Middle East, which had impacted energy prices over the past three 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. It added that the new gantry price is now N1,175, while the coastal price per metric tonne has been reduced from N1,595,790 to N1,495,215. The refinery said 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,” the circular noted, adding, “We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery.” The latest reduction 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. Oil prices, which had surged to about $120 per barrel at the peak of the crisis, fell below $80 per barrel as of Tuesday after US President Donald Trump announced a peace deal. Speaking in an interview, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said petrol could sell for between N1,200 and N1,250 in Lagos, while prices may be around N1,300 in other locations. According to Ukadike, marketers have not yet reduced pump prices because many still hold old stock, urging Nigerians to exercise patience. He said consumers often expect immediate price adjustments, noting that such moves would result in losses for marketers still holding expensive inventory. Related News Dangote Refinery and the rising cost of petrol Oil dro