Petrol prices in Nigeria could decline to about 1,200 naira per liter in the coming days after the Dangote Petroleum Refinery reduced its ex-depot price amid falling global crude oil prices, petroleum marketers said.
The refinery announced a reduction of 75 naira per liter in its petrol gantry price, lowering it from 1,250 naira to 1,175 naira per liter. The adjustment follows a decline in crude oil prices after easing tensions between the United States and Iran.
In a circular issued to fuel marketers, the refinery said the review was prompted by the de-escalation of tensions in the Middle East, which had contributed to elevated energy prices in recent months.
The company also reduced its coastal price per metric ton from 1.596 million naira to 1.495 million naira. The new rates took effect Tuesday.
The price cut has prompted other fuel depots to lower their ex-depot prices to about 1,180 naira per liter, according to industry pricing data.
Despite the reductions, filling stations across the country have yet to significantly adjust retail pump prices, with many outlets still selling petrol for around 1,280 naira per liter.
Marketers attributed the delay to existing inventories purchased at higher prices and said immediate reductions could result in financial losses.
Chinedu Ukadike, national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said consumers should begin to see lower pump prices within days as marketers clear old stock and begin purchasing fuel at the revised rates.
According to Ukadike, petrol could sell for between 1,200 and 1,250 naira per liter in Lagos, while prices may remain slightly higher in more distant locations due to transportation costs.
He noted that fuel loading activities typically slow after major price announcements, allowing marketers time to dispose of existing inventory before adjusting to new market conditions.
The reduction comes as global oil markets continue to respond to reports of a peace agreement between the United States and Iran and the reopening of the Strait of Hormuz, a critical shipping route for global energy supplies.
Crude oil prices, which had climbed above $100 per barrel during months of heightened tensions and at times exceeded $120 per barrel, have fallen sharply in recent days.
Industry reports showed Brent crude, the international oil benchmark, declined from about $87 per barrel on Sunday to roughly $78 per barrel on Tuesday following news of a ceasefire agreement between Washington and Tehran.
The decline in crude prices has raised expectations of further reductions in domestic fuel prices
