Nigeria's Petrol Prices May Drop to N1,200 Amid Cuts

Dangote Petroleum Refinery has announced a reduction in its petrol gantry price from N1,250 to N1,175 per liter, which may lead to retail prices dropping to between N1,200 and N1,250 per liter in Nigeria. This price adjustment is a response to falling crude oil prices, which have been influenced by a peace deal between the United States and Iran.

Despite the refinery's new pricing taking effect at midnight on Tuesday, fuel stations have not yet adjusted their pump prices, which remain around N1,280. Chinedu Ukadik from the Independent Petroleum Market Association of Nigeria indicated that the market is currently holding onto old stock to avoid losses, urging consumers to be patient as the market adjusts.

Joseph Obel, a spokesman for the Petroleum Product Retail Outlet Owners Association of Nigeria, expressed concerns that imported petroleum products appear cheaper than locally refined fuel. The latest price cuts come amid easing tensions in the global oil market, with crude prices having recently peaked above $120 per barrel before falling below $80.