A fresh price war has swept through Nigeria's downstream petroleum market after depot owners in Lagos slashed petrol prices by nearly 5% within 24 hours, following Dangote Refinery's decision to reduce its ex-gantry price to ₦1,175 per litre.
Petroleumprice.ng market data showed that depot closing prices on June 15 stood at ₦1,240 per litre at Aiteo, Aipec, A.A. Rano and Lister. However, by June 16, several depots, including Aiteo, A.A. Rano, TMDK, Aipec, Ardova, Rainoil and 11PLC, had lowered their PMS prices to ₦1,180 per litre.
The ₦60 per litre reduction represents a 4.84% decline, while Dangote Refinery's ₦75 per litre cut amounts to a 6% reduction.
The rapid adjustment reflects the immediate impact of declining international oil prices, with global crude benchmarks now trading below $80 per barrel following the US-Iran agreement and growing optimism over the reopening of the Strait of Hormuz.
The development underscores the increasing sensitivity of Nigeria's deregulated downstream market to global events. Marketers have moved quickly to protect market share, avoid holding expensive inventories and remain competitive against Dangote Refinery's pricing strategy.
Industry sources said many marketers had already delayed purchases over the past week in anticipation of a market correction as geopolitical tensions eased.
Analysts believe further reductions could follow in the coming days if global oil prices remain subdued and the US-Iran agreement is formally implemented, potentially providing relief for consumers after months of elevated fuel costs.