US–Iran war: Despite Dangote price cut, marketers sell petrol at N1,330/litre

Despite the reduction in the gantry price of Dangote Petroleum Refinery to N1,200 per litre from N1,275 per litre, oil marketers have continued to sell Premium Motor Spirit, PMS, also known as petrol, at N1,330 per litre and above in Lagos and its environs.

Motorists had expected that with the N75 per litre reduction by the refinery, the price cut would be reflected at petrol stations, reports Vanguard.

However, checks by our correspondent yesterday showed that MRS sold the produict at N1,300 per litre, while Mobil retailed at N1,330 per litre in Lagos.

Further checks indicated that transporters continued to charge exorbitant fares across the metropolis and on the outskirts.

Commuters paid as much as N2,600 from Ikorodu to Mile 12 yesterday, compared to about N1,500 before the recent surge in petrol prices.

Meanwhile, the Dangote refinery has continued to attract patronage from many oil marketers, despite the issuance of import licences to six marketers.

According to S&P Global, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, eased petrol import restrictions by granting a new batch of licences to six local marketers, prompting temporary patronage of fuel importers.

Reacting, the National President of the Oil and Gas Service Providers Association of Nigeria, OGSPAN, Colman Obasi, said: “Dangote Petroleum Refinery has the capacity to flood the domestic market and even export to other markets.

“Fuel importers are in business to make profit, while the Dangote refinery has, over time, increased its operational capacity to meet domestic demand.

“The domestic refineries, especially Dangote, should be encouraged to meet local demand and export petroleum products. This will conserve foreign exchange and generate additional revenue for the nation.”

Also speaking, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said: “With the latest gantry price reduction, Dangote Petroleum Refinery has repositioned itself in the domestic market as the market leader.”

Meanwhile, the global oil market continues to react to Middle East tensions, with Nigeria’s Bonny Light crude rising to about $110 per barrel from $100 per barrel.

However, there are indications of possible stability, as Iran has permitted the passage of 10 tankers through the strategically critical Strait of Hormuz, even though the details of the shipments remained unclear, as analysts believe the vessels may be carrying Saudi Arabian crude.

Commenting, petroleum economist, Wumi Iledare, said: “The Middle East tensions have tightened global oil supply and pushed crude prices upward. Since petrol prices are closely linked to crude oil prices and exchange rate movements, Nigerian households and businesses are already facing higher transport costs, rising food prices, and increased operating expenses.”

Similarly, the Director-General of the Lagos Chamber of Commerce and Industry, LCCI, Chinyere Almona, said: “The current challenge reflects a structural supply deficit, as Nigeria’s daily petrol demand of over 50–53 million litres continue to outpace effective domestic refining capacity.”

She called for government intervention, stressing that “immediate priorities should include targeted, time-bound support for critical sectors, such as transportation, agriculture, and SMEs, to mitigate inflationary spillovers, while avoiding inefficient blanket subsidies.

“More critically, stabilising the naira through improved FX liquidity and policy coordination is essential, given the strong exchange-rate pass-through into fuel pricing. The government must also signal policy clarity and consistency to reinforce investor confidence in the deregulated regime.

“While higher crude prices typically imply fiscal upside, Nigeria’s benefits remain constrained by production limitations and structural inefficiencies.”