Nigerian motorists may finally get some relief at the pumps as global crude oil prices recorded a sharp decline, raising hopes of a petrol price drop across the country. Brent crude, Nigeria’s oil benchmark, fell by more than 15 percent to below $95 per barrel on Wednesday, easing pressure on the downstream fuel market after weeks of steady increases.
The drop in oil prices followed a surprise geopolitical shift after U.S. President Donald Trump announced a conditional two-week ceasefire agreement with Iran. The development calmed tensions around the Strait of Hormuz — a critical global oil route — prompting investors to sell off oil amid expectations of improved supply. Analysts say this de-escalation has immediately influenced global energy markets.
Reacting swiftly, the Dangote Refinery reduced its petrol price to around N1,200 per litre, signaling potential downward adjustments across Nigeria. Early signs of relief are already visible, with NNPC retail outlets in Abuja cutting pump prices and some Lagos stations confirming slight reductions. This marks a reversal from recent hikes that pushed petrol prices as high as N1,350 per litre in some cities.
The recent volatility highlights the realities of Nigeria’s deregulated fuel market, where domestic prices now respond quickly to global oil movements. Since the removal of fuel subsidies in 2023, consumers have been directly exposed to international price swings. Between January and March 2026 alone, Dangote Refinery adjusted petrol prices nine times, reflecting the market’s sensitivity to crude fluctuations.
However, experts warn that the relief may be temporary. The ceasefire is only set for two weeks, and uncertainties remain around global supply stability. In addition, local challenges such as crude supply shortages to the Dangote Refinery could limit how much of the global price drop is passed on to consumers. For now, while Nigerians may enjoy a short-term reduction in fuel costs, the long-term outlook remains uncertain.
source: Business day