Middle East Conflict: Dangote Lowers Petrol to N1,075 as Oil Prices Fall

The Dangote Petroleum Refinery has slashed its ex-gantry petrol price by N100 per litre, reducing the rate from N1,175 to N1,075 per litre after global crude oil prices declined to $88 per barrel.

Petrol supplied through the refinery’s coastal distribution channel will now cost N1,050 per litre.

Global oil prices eased after U.S. President Donald Trump said the war involving the United States and Iran would “end soon,” reducing fears of a prolonged disruption in oil supply.

The conflict involving the United States, Iran and Israel had earlier pushed prices higher after Iran blocked the Strait of Hormuz, disrupting supply and driving crude prices to $110 per barrel, the highest level since July 2022.

Speaking from his Trump National Doral Miami resort, Trump said the war in Iran was a “little excursion” that had succeeded “much faster than we thought.”

He added that the U.S. administration was “looking to keep the oil prices down”, noting that prices “went artificially up because of this excursion.”

But Iran rejected the possibility of negotiations with Washington. Foreign Minister Abbas Araghchi said discussions with the United States were not under consideration.

“I don’t think talking with the Americans would be on our agenda anymore,” he said during an interview with PBS News.

He added that Iran was ready to continue its missile attacks “as long as needed and as long as it takes.”

Diesel price also reduced

The refinery also cut the diesel price to N1,430 per litre, down N190 from N1,620 per litre, according to its latest pricing template.

The refinery noted that the ex-gantry prices do not include statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Previous price increases

The latest adjustment follows several increases earlier in the week. On Monday, the refinery raised petrol prices to N1,175 per litre, up from N995 on March 7 and N874 on March 2, amid rising global oil prices caused by the Middle East conflict.

Dangote Refinery CEO David Bird previously said the refinery remains exposed to international oil price fluctuations because it purchases crude based on global benchmarks.

Market data showed Brent crude fell by 10.45% to $88 per barrel, while West Texas Intermediate declined 8.58% to $86.77 per barrel.

Retail prices remain high

Despite the reduction, many filling stations in Abuja have maintained higher pump prices.

Stations run by NNPC Limited continued selling at N1,285 per litre, while outlets such as AA Rano and AYM Shafa were selling at N1,330 per litre.

The Petroleum Products Retail Outlets Owners Association of Nigeria said retail prices would likely fall after marketers sell off existing stock.

Its president Billy Gillis-Harry said:

“The refinery has taken the right step. Other operators in the downstream will follow as soon as they finished selling their stocks.”

Meanwhile, Fitch Ratings warned that the Iran conflict could increase economic pressure on emerging market economies through higher energy costs, exchange rate volatility and weaker investor confidence.

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