Dangote Petroleum Refinery and other fuel suppliers have reduced pump prices for Premium Motor Spirit (PMS), popularly known as petrol, following a sharp drop in global crude oil prices that has intensified competition in Nigeria’s downstream petroleum sector.
The price cuts came after Brent crude, the international benchmark, fell below $80 per barrel amid easing tensions in the Middle East. Daily Trust reports that crude prices have been on a downward trend since the United States and Iran signalled progress toward peace, culminating in a deal expected to be signed in Switzerland on Friday, alongside the anticipated reopening of the Strait of Hormuz.
As of Tuesday, June 16, 2026, Brent crude was priced at $78.63 per barrel, while West Texas Intermediate (WTI) traded at $75.74 per barrel.
In response, Dangote Refinery, which has become a dominant force in Nigeria’s fuel market, led the price review by cutting its ex-depot petrol price from N1,250 to N1,175 per litre. Other marketers, including Rainoil and Ardova, also reduced their prices from N1,280 to N1,180 per litre.
The development offers some relief to Nigerians struggling with high transportation and living costs. However, checks in Lagos and other major cities show that many filling stations have yet to adjust pump prices, with petrol still selling at between N1,270 and N1,300 per litre.
Marketers Say Reduction Falls Short
Despite the price cuts, many marketers insist the reduction does not reflect the scale of the drop in crude prices, which traded above $113 per barrel as recently as May. They argue that domestic fuel prices fell more slowly than they rose when crude prices were climbing earlier in the year, and that the same urgency seen during price increases should apply to price reductions.
National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Alhaji Olanrewaju Okanlawon, told Daily Trust that the current reduction is insufficient, though he expressed optimism that prices would continue to fall. He warned IPMAN members against excessive stockpiling to avoid running losses, projecting that Brent crude could drop to $70 per barrel within days.
The fall below $80 per barrel offers breathing room to refiners worldwide, particularly in import-dependent markets. For Nigeria, the effect is especially notable given that fuel pricing remains closely linked to international crude prices and exchange rate movements, despite the country’s standing as a major oil producer.
Dangote Refinery, Africa’s largest single-train refinery with a capacity of 650,000 barrels per day, has reshaped Nigeria’s fuel pricing landscape since beginning large-scale production, cutting the country’s reliance on imported petrol and sharpening competition among suppliers.
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