- Dangote Petroleum Refinery has lowered its ex-gantry petrol price by N100 per litre, bringing it down to N1,075 from N1,175 per litre
- The reduction followed a significant drop in global crude oil prices from $110 per barrel to $88 per barrel
- US President Donald Trump declared that the US-Iran war “would end soon,” easing fears of extended supply disruptions
The Dangote Petroleum Refinery on Tuesday, March 10, reduced its ex-gantry petrol price by N100 per litre, bringing it down to N1,075 from N1,175 per litre.
Petrol supplied through coastal distribution will now sell at N1,050 per litre.
The move follows a drop in global crude oil prices to $88 per barrel from $110 per barrel.
The crude oil price fell after US President Donald Trump declared on Monday, March 9, that the war with Iran “would end soon,” easing fears of prolonged disruptions to global oil supply.
The ongoing conflict, which involves the United States, Iran, and Israel, had previously pushed prices to $110 per barrel, the highest since July 2022, due to the blockade of the Straits of Hormuz and shutdowns of key oil installations.
Speaking from his Doral resort in Miami, Trump described the Iran conflict as a “little excursion” that had succeeded “much faster than we thought.”
He added that his administration was “looking to keep the oil prices down, as they went artificially up because of this excursion.”
Despite Trump’s statement, Iranian authorities have ruled out talks with the US, vowing to continue missile attacks. Iran’s Foreign Minister, Abbas Araghchi, told PBS News, “I don’t think talking with the Americans would be on our agenda anymore. We are prepared, we have been prepared to continue attacking them with our missiles as long as needed and as long as it takes.”
Meanwhile, Fitch Ratings warned that emerging market economies could face heightened economic and financial pressures due to the conflict.
In its latest pricing update, Dangote Refinery also reduced diesel prices by N190, from N1,620 to N1,430 per litre, offering further relief to consumers and businesses reliant on fuel.
The refinery clarified that quoted gantry prices exclude statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Tuesday’s reduction follows a period of sharp increases.
On Monday, petrol prices jumped from N995 on March 7 to N1,175 per litre, after a March 2 price of N874, driven by global crude oil surges linked to the Middle East conflict.
David Bird, CEO of Dangote Petroleum Refinery, noted on March 9 that the refinery is not insulated from global oil price shocks, as it sources crude based on international benchmarks.
Brent crude dipped by over 10.45% to $88 a barrel, while US West Texas Intermediate fell 8.58% to $86.77 per barrel.
European ministers have also met to discuss releasing oil reserves to curb recent price surges.
However, domestic petrol retail outlets in Abuja have yet to adjust prices downward, with some selling petrol between N1,150 and N1,250 per litre despite the drop. Transport fares have risen by as much as 30% as a result.
Reacting to the crude price drop, Olajide Jeremiah, CEO of Petroleumprice.ng, said, “The news of change in crude oil price and gantry price of Dangote Petroleum Refinery came as a big surprise to the domestic market.
“Many depots and filling stations are still selling at the old price, but there should be downward adjustments before the weekend.
“The domestic market will continue to respond to developments in the global market. From all indications, the market will remain very unstable till the end of the current US-Iran conflict, which no one can accurately predict.”
Billy Gillis-Harry, National President of PETROAN, praised Dangote Petroleum Refinery for the price reduction, noting that other operators will follow once they exhaust old stocks.
“The refinery has taken the right step. Other operators in the downstream will follow as soon as they finished selling their stocks,” he said.
He emphasised that boosting Nigeria’s domestic refining capacity is crucial to reducing exposure to international market volatility, highlighting the country’s abundant crude oil reserves under NNPC custody.
Dr. Muda Yusuf, Executive Director of the Centre for Promotion of Private Enterprises (CPPE), stressed the importance of supporting domestic refining through coherent trade, fiscal, and monetary policies.
“Priority areas should include ensuring reliable crude supply arrangements, strengthening petroleum distribution infrastructure, introducing tariff protection, encouraging additional refining investments, and promoting export competitiveness for refined petroleum products,” he said.
Fitch Ratings’ report, titled “Iran conflict raises new credit risks for emerging market sovereigns,” warned that sustained disruptions to Gulf energy supplies could strain countries dependent on imports.
The agency said, “More sustained disruption to energy flows than currently assumed in our baseline scenario could significantly damage global investor sentiment,” potentially impacting remittances, exchange rates, and access to finance in emerging markets.
“Higher energy prices could put upward pressure on inflation, affecting monetary policy decisions globally,” Fitch added, emphasising that oil and gas imports are the most direct channel for contagion from the conflict.
For major importers like India, net fossil fuel imports account for 3% or more of GDP.
Fitch concluded that the Iran conflict could raise additional challenges for some emerging market sovereigns, through channels such as energy imports, remittances, fiscal subsidies, exchange rates, and access to international finance.