Nigeria's fuel market is feeling the first direct effects of peace in the Middle East, and Dangote Refinery moved within hours to pass the relief on to marketers.
Dangote Petroleum Refinery has announced a significant reduction in its petrol ex-gantry price, cutting the rate by ₦75 per litre, from ₦1,250 to ₦1,175 per litre. The new pricing takes effect from 12 am today, June 16, and comes amid the recent de-escalation of geopolitical tensions in the Middle East and a sharp decline in international crude oil prices.
In a circular to fuel marketers, the refinery 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." The refinery added that all outstanding unloaded gantry volumes will be repriced at the new rate, effective midnight.
The refinery also reduced its coastal loading price, lowering the rate from ₦1,595,790 per metric tonne to ₦1,495,215 per metric tonne.
The trigger for the cut is a genuine geopolitical turning point. 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. Brent crude, the global benchmark, dropped sharply, with the US and Iran confirming on Sunday that they had reached an agreement to end the war.
The relief could deepen further if the truce holds. Petrol could drop to as low as ₦900 per litre in the coming days if the peace deal between the United States and Iran materialises fully, with US President Donald Trump announcing the signing of the agreement alongside a partial reopening of the Strait of Hormuz, a development that has fuelled further speculation of falling oil prices.
The cut is not without a structural caveat that could slow the pace of further relief. Officials at Dangote Refinery noted that the company still holds crude oil purchased at significantly higher prices during the peak of the crisis, a factor that may affect the pace of future reductions.
The latest adjustment also reaffirms a now-familiar market dynamic. The cut reinforces Dangote Refinery's growing influence over Nigeria's fuel pricing landscape, as market participants increasingly adjust their pricing strategies in response to movements at the 650,000-barrels-per-day facility. With crude oil prices retreating and market sentiment improving, analysts expect further downward adjustments across petrol and diesel prices if global energy markets remain stable in the coming weeks.
For Nigerian motorists who have absorbed months of volatile, war-driven fuel costs, the ₦75 cut is the clearest signal yet that the worst of the Middle East energy shock may finally be behind them, provided the ceasefire holds.
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