Big Drop Coming? Petrol Price Could Fall To ₦1,200 After Dangote Depot Rate Slash

Petroleum marketers have projected that the pump price of Premium Motor Spirit (PMS), commonly known as petrol, could fall to around ₦1,200 per litre following a reduction in ex-depot prices driven by the Dangote Petroleum Refinery.....KINDLY READ THE FULL STORY HERE▶

The refinery recently reduced its petrol gantry price by ₦75 per litre, from ₦1,250 to ₦1,175, amid a decline in global crude oil prices triggered by easing geopolitical tensions after a reported peace agreement between the United States and Iran.

Following the adjustment, other depot operators also reviewed their prices downward to about ₦1,180 per litre, according to data from Petroleumprice.ng. However, retail stations have yet to reflect the new rates, as many are still selling petrol at around ₦1,280 per litre due to existing high-cost inventories.

In a circular sent to marketers on Monday, the refinery explained that the price revision followed improved stability in the Middle East, which had previously contributed to volatility in global energy markets.

It stated that the revised gantry price of ₦1,175 per litre and a reduced coastal price of ₦1,495,215 per metric tonne would take effect from midnight on Tuesday. It also directed that outstanding gantry volumes be repriced under the new structure.

Market data shows that crude oil prices, which had surged during recent tensions, have now eased significantly. Brent crude, the international benchmark, fell from about $87 per barrel to around $78 per barrel following news of a truce.

The decline is expected to ease pressure on domestic fuel pricing in Nigeria, where pump prices had risen sharply during the period of global uncertainty.

Industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN), said petrol could soon sell between ₦1,200 and ₦1,250 per litre in Lagos once newly priced stock enters circulation, with higher prices likely in remote areas due to logistics costs.

They noted that immediate price reductions at filling stations were being delayed by the need to exhaust old inventories purchased at higher rates.

Marketers explained that loading activities typically slow down whenever new pricing announcements are made, as operators adjust to avoid losses on previously acquired stock.

Meanwhile, some industry players have called for expanded fuel import licences, arguing that imported products currently appear cheaper than locally refined petrol, a situation they say requires regulatory attention from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Although the recent price cut has been welcomed as a step toward relief for consumers, some Nigerians have expressed concern that the ₦75 reduction does not fully reflect the magnitude of the recent decline in global crude oil prices.

With crude prices now trending downward, marketers say further adjustments in petrol pricing may follow if the global market stability continues.