By EDITOR
Dangote Petroleum Refinery and others has announced the reductions in the pump price of Premium Motor Spirit (PMS), commonly known as petrol. The reduction is due to the recent decline in global crude oil prices which triggered a fresh round of competition in Nigeria’s downstream petroleum sector.
The price adjustments followed the fall of Brent crude, the international benchmark, below the $80 per barrel threshold amid easing geopolitical tensions in the Middle East.
According to Daily Trust reports, the crude prices have recorded downward trends following the signals of peace between the United State and Iran which later culminated in a deal announcement.
The deal is expected to be signed on Friday in Switzerland amidst impending reopening of the Strait of Hormuz.
The development has triggered a massive drop in crude prices with Brent Crude prized at $78.63 per barrel as of Tuesday 16th June, 2026. Also the West Texas Intermediate (WTI) crude traded at $75.74 per barrel.
In Nigeria, Dangote Petroleum Refinery, which has emerged as a dominant supplier in the domestic fuel market, led the latest price review by reducing its ex-depot petrol price from N1,250 per litre to N1,175. Other importers like Rainoil, Ardova, among others also slashed prices to N1,180 from N1,280 per litre.
The reduction comes as relief for millions of Nigerians grappling with high transportation and living costs.
In Lagos and other major cities, checks indicated that many filling stations are yet to adjust their pump prices as they still sell at N1,270 and N1,300 per litre.
…Reduction not enough – Marketers
However, many marketers stated that the reduction is not enough. According to them, Brent crude, which traded above $113 per barrel in May, has fallen sharply in recent weeks.
Market participants argue that the pace of domestic fuel price reductions has not matched the speed at which crude prices climbed earlier in the year.
According to some marketers, fuel prices reacted quickly when crude oil surged above $100 per barrel, leading to successive increases in ex-depot prices. They contend that a similar pricing response should occur on the downside to ease pressure on operators and consumers.
Speaking with Daily Trust, National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon stated that the reduction is not enough and expressed optimism that the fuel price would continue to come down.
He also cautioned their members against excess buying to avoid running at a loss even as he projected that the Brent Crude could go to $70 per barrel in a few days’ time.
The decline below $80 per barrel has provided refiners globally with some breathing space, particularly those operating in import-dependent markets.
For Nigeria, the impact is especially significant because petroleum product pricing remains closely tied to international crude prices and foreign exchange movements despite the country’s status as a major oil producer.
The Dangote Refinery, Africa’s largest single-train refinery, has increasingly shaped pricing trends since commencing large-scale fuel production. With a refining capacity of 650,000 barrels per day, the facility has reduced Nigeria’s dependence on imported petrol and intensified competition among fuel suppliers.