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Brent Crude Drops as Middle East Tensions Ease; Dangote Reduces Petrol Price by ₦40 Per Litre
Dangote Petroleum Refinery has announced a reduction in its ex-depot petrol price from ₦880 per litre to ₦840, following a drop in global crude oil prices as tensions between Israel and Iran de-escalated.
TJ News Nigeria reports that the price cut, effective from Monday, June 30, 2025, comes barely a week after the Lagos-based refinery raised its ex-depot petrol price to ₦880 per litre.
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New Price Update: ₦840 Per Litre Ex-Depot
The update was confirmed by the refinery’s spokesperson, Tony Chiejina, who stated that the reduction applies immediately to all marketers and retailers who lift directly from the Dangote facility.
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According to Chiejina:
“The new ex-depot price of ₦840 per litre is effective from Monday, June 30, 2025.”
Retailers such as MRS Oil & Gas, Ardova Plc, Heyden Petroleum, and others with supply contracts with the refinery are expected to reflect this change at their pump stations — bringing retail petrol prices below ₦900 per litre in several locations.
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Why the Price Was Reduced
The ₦40 price cut follows a global dip in crude oil prices. TJ News Nigeria learnt that a temporary ceasefire between Israel and Iran led to a sharp decline in Brent crude prices.
- Brent crude fell by 16 cents (0.24%), closing at $67.61 per barrel, down from over $80 per barrel a week prior.
- The easing tensions followed the United States’ military strikes on Iranian nuclear facilities, leading to de-escalation in the region.
This drop in international oil benchmarks directly impacted the Dangote refinery ex-depot pricing model, prompting the downward revision.
Other Recent Developments at Dangote Refinery
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On June 15, 2025, the $20 billion Dangote Refinery announced free distribution of petrol and diesel to select marketers and distributors across Nigeria as part of its national energy relief strategy.
Highlights of the initiative:
- Distribution will begin on August 15, 2025
- 4,000 brand-new CNG-powered tankers have been procured for the rollout
- A credit facility is now available:
- Marketers buying a minimum of 500,000 litres can access an additional 500,000 litres on credit, under a bank guarantee, with a two-week repayment window
Industry Reaction: Marketers Push Back
Despite the seeming benefit to end-users, petrol marketers and logistics operators have raised alarms over Dangote’s pricing and distribution expansion.
According to stakeholders:
- The refinery’s moves could undermine private depot owners, independent marketers, and truck operators
- Concerns have been raised with regulatory bodies such as the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) over alleged market distortion
“If this continues unchecked, it could choke retail outlets and depot owners with existing supply obligations,” one marketer noted.
Nigeria’s Fuel Supply Landscape: A Brief Background
For decades, Nigeria — Africa’s largest oil producer — struggled with an unreliable power grid, making petrol a vital energy source for homes and businesses.
- Until 2024, all state-owned refineries remained dormant.
- Nigeria relied almost entirely on imported refined fuel, mainly supplied through the NNPC Limited.
- Since the subsidy removal in May 2023 under President Bola Ahmed Tinubu, petrol prices skyrocketed from around ₦200/litre to nearly ₦1000/litre in some regions.
This development added financial pressure on citizens who depend on fuel for vehicles and generators amid a decades-long electricity crisis.
What’s Next?
With global crude oil prices still volatile, market watchers suggest further reviews of the Dangote ex-depot petrol price are likely in the coming weeks. Analysts say the refinery’s aggressive pricing model could drive competition but may also trigger regulatory scrutiny.
Key Takeaways:
- New ex-depot price: ₦840/litre (down from ₦880)
- Effective date: June 30, 2025
- Brent crude drop linked to Israel-Iran ceasefire
- Pump prices may fall below ₦900 in some stations
- Marketers concerned about market disruption from Dangote’s rapid expansion
TJ News Nigeria will continue to monitor developments in the downstream sector and provide timely updates on petrol pricing, ex-depot changes, and market response across the country.
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