By Our Correspondent
Depot operators across Nigeria’s downstream petroleum market have started reducing petrol and diesel prices below Dangote Petroleum Refinery gantry rates following the sharp decline in global crude oil prices linked to easing tensions around the Strait of Hormuz and ongoing U.S.-Iran negotiations.
Market checks by Petroleumprice.ng on Monday showed that some Lagos depots adjusted Premium Motor Spirit (PMS), commonly known as petrol, prices below the Dangote Refinery gantry price of ₦1,275 per litre.
Ardova Petroleum revised its petrol price to ₦1,275 per litre, while Nipco and Aiteo both adjusted PMS prices downward to ₦1,274 per litre.
The emerging price movement has also extended to the diesel market.
In Warri, Rainoil and Danmarna reviewed Automotive Gas Oil (AGO) prices downward to ₦1,798 per litre, below prevailing market benchmark levels.
The price adjustments followed a sharp drop in international crude oil prices amid expectations of a possible diplomatic breakthrough involving the United States and Iran that could stabilise oil supply flows through the Middle East.
As of 5pm WAT on Monday, Brent crude traded at $97.62 per barrel, down 5.72 percent, while U.S. West Texas Intermediate crude fell 5.71 percent to $91.08 per barrel.
Industry sources said depot operators were beginning to respond to softer global crude prices and expectations of lower replacement costs for imported petroleum products.
Traders also noted that the reductions reflect increasing competition among private depots seeking to attract bulk buyers and sustain product evacuation volumes amid shifting market conditions.
Market participants said additional downward price adjustments could emerge across other depots if international crude prices continue to weaken in the coming days.
The latest pricing trend highlights the growing influence of global oil market movements on domestic petroleum pricing dynamics, particularly within Nigeria’s deregulated downstream sector.
