LAGOS — In a move expected to provide relief to consumers across Nigeria, the Dangote Petroleum Refinery has announced a reduction in the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by N75 per litre.

According to a circular issued to fuel marketers on Monday, the new gantry price has been adjusted to N1,175 per litre, down from the previous rate of N1,250. The refinery also confirmed a reduction in the coastal price per metric tonne, which has been lowered from N1,595,790 to N1,495,215.

Market Impact and Global Context

The price adjustment follows the signing of a ceasefire agreement between the United States and Iran, which has significantly de-escalated tensions in the Middle East. For the past three months, the conflict which began on February 28 had caused global crude oil prices to surge above $120 per barrel, leading to a domestic spike in fuel costs from approximately N830 to over N1,300 per litre in Nigeria.

With the reopening of the Strait of Hormuz and the subsequent decline in global Brent crude benchmarks, market analysts are optimistic about further domestic price corrections. Reports suggest that if the current de-escalation holds, petrol prices in Nigeria could potentially trend toward the N900 per litre mark in the coming days.

Implementation and Future Outlook

The new rates took effect at midnight on Tuesday, June 16, 2026. The refinery’s management has confirmed that all outstanding unloaded gantry volumes will be repriced at the new, lower rate.

Despite the optimism, a Dangote Refinery official urged a measured outlook, noting that the facility currently holds "expensive crude" acquired during the height of the conflict in its storage tanks. While the current reduction is a significant step toward stabilizing the market, the official suggested that further price drops will depend on the cost of future feedstock and the sustained stability of the global oil market.

For now, the reduction is being welcomed by fuel marketers and consumers alike, as the country seeks to navigate the economic impact of the volatile global energy market.