Dangote Refinery leads Nigeria fuel prices reductions as global crude oil retreats following the US-Iran peace deal and planned reopening of the Strait of Hormuz, offering gradual relief to motorists

The Dangote Petroleum Refinery and several private depot operators in Nigeria have begun reducing petrol and diesel prices as global crude oil costs retreat sharply in the wake of the landmark ceasefire agreement between the United States and Iran.

Also read: Dangote price cut sparks petrol relief hope

President Donald J. Trump of the United States and President Masoud Pezeshkian of Iran signed the memorandum of understanding in Versailles, France, on Wednesday evening, June 17, 2026, formally de-escalating months of conflict and paving the way for the reopening of the Strait of Hormuz.

Crude oil prices, which had climbed to around $120 per barrel at the height of the United States-Iran tensions, have since fallen to about $78 per barrel, prompting swift adjustments in Nigeria’s downstream sector.

The Dangote Petroleum Refinery, Africa’s largest, took the lead by slashing its petrol gantry price by N75 per litre, from N1,250 to N1,175.

It also reduced diesel and aviation fuel prices by N100 per litre each, to N1,600 and N1,450 respectively.

Chinedu Ukadike, spokesman for the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained the measured approach.

“The reduction will be systematic,” he said. “If Dangote does that reduction holistically, it will certainly affect some people who have products, and they might not be able to sell the products.

This will cost marketers huge losses.”

Ukadike urged patience, noting that the market was already in a descending phase with the anticipated reopening of the Strait of Hormuz.

He added that Dangote would align prices with international crude costs and its refining expenses over time.

A source within the Dangote Group emphasised the complexities involved. “Crude prices are still swinging,” the source said. “People making such comments are either insincere or they don’t know the business.

Let them go and check the prices all over Africa or the world.”

The source indicated that pump prices could eventually fall as low as N900 per litre once higher-cost stocks are cleared.

Many filling stations have yet to fully reflect the changes, with pump prices lingering around N1,280 per litre in some areas as retailers clear existing inventory purchased at peak rates.

However, some outlets have trimmed prices by about N10 per litre, with further adjustments expected in the coming days.

Private operators such as Rainoil have followed suit, lowering aviation fuel prices modestly, while average diesel depot prices in Lagos stood around N1,660 per litre on Tuesday.

This welcome development follows sharp increases during the crisis, when petrol prices soared from around N830 to over N1,300 per litre.

Also read: Dangote Refinery cuts petrol price after relief move

The current adjustments offer a measure of relief to Nigerian motorists and businesses still grappling with the economic impact of elevated fuel costs, though full benefits may unfold gradually as supply chains normalise.