Petrol price in Nigeria may fall to ₦900 per litre if the US-Iran truce succeeds and crude oil prices continue to decline— Oil Marketers
The possibility of cheaper petrol is raising fresh excitement across Nigeria. Industry operators say petrol prices could drop to as low as ₦900 per litre if the proposed peace deal between the United States and Iran becomes reality.
This expectation follows the recent fall in global crude oil prices. Crude oil sold above $120 per barrel in April. However, the price dropped to about $87 per barrel by Sunday. The decline has sparked hopes that fuel prices will also reduce.
During the conflict, crude prices climbed above $100 and sometimes crossed $120 per barrel. As a result, petrol prices in Nigeria jumped from around ₦830 to ₦1,300 per litre. If the Strait of Hormuz reopens fully, marketers believe petrol, diesel, and aviation fuel prices could fall even further.
Meanwhile, attention is turning to the Dangote Petroleum Refinery. Many industry players expect another fuel price cut if crude prices remain low. The refinery had already reduced its petrol gantry price to ₦1,250 per litre from ₦1,275. Diesel was also cut to ₦1,700 per litre from ₦1,800.
A refinery source said a further reduction is possible, although the company still holds expensive crude purchased earlier. According to the source, “Yes, N900/litre petrol is possible if oil prices settle down, but we still have the expensive crude stock in our tanks.”
Petroleum Retail Outlet Owners Association of Nigeria also shares the optimism. Speaking with The PUNCH in a recent interview, PETROAN Publicity Secretary, Joseph Obele, said cheaper fuel is likely if the Strait of Hormuz reopens. He stated, “If the Strait of Hormuz is reopened, Nigerians should expect a very significant reduction in petrol prices. Petrol will fall below N1,000, probably to N900/litre. Don’t forget that the product was N800+ before the Middle East crisis. Now that the war is getting over, we should be expecting a return to that price regime.”
Adding to the optimism, US President Donald Trump announced on social media that a peace deal with Iran would be signed on Sunday. He said the deal is markedly different from the one negotiated under former U.S. President Barack Obama, which he claimed would have enabled Iran to obtain nuclear weapons. According to Trump;
“My agreement with Iran is the exact opposite: A WALL TO NO NUCLEAR WEAPON! In fact, they no longer want a nuclear weapon, nor will they have one, either through purchase, development, or any other form of procurement. The deal is scheduled to get signed tomorrow (Sunday), and immediately after it is signed, the Hormuz Strait is OPEN TO ALL.”
He added, “Our relationship with Iran is a much different and better one than previous administrations have had. Unlike Obama’s hundreds of billions of dollars in payments to them, including $1.7bn in green, cold cash, no money will exchange hands.“At the appropriate time, when all is calm, we will go in and get the nuclear dust buried deep under the powerful sunken granite mountains… and downblend and destroy it, whether in Iran or the United States. We look forward to working with Iran and the entire Middle East, long into the future.”
Recall that the United States and Iran have signed a preliminary framework agreement. This is not a final comprehensive deal and key issues—including implementation timelines, sanctions-related measures, and long-term nuclear commitment— are still subject to further negotiations and formal ratification.
If the agreement succeeds and crude prices continue falling, fuel marketers expect another round of petrol price reductions across Nigeria.
