Frustration is boiling over across Nigeria as citizens have begun demanding why local fuel pump prices remain high despite a U.S-Iran deal.
This outcry follows a dramatic drop in global crude oil benchmarks sparked by a peace agreement between the United States and Iran.
The U.S.-Iran deal, formally signed in Switzerland on June 19, 2026, has led to the lifting of the U.S. naval blockade on Iranian ports and the reopening of the strategic Strait of Hormuz.
Consequently, global oil markets reacted instantly, sending Brent crude tumbling from its peak of $120 per barrel during the three-month conflict down to under $80 per barrel.
Yet, for the average Nigerian, the relief felt on the global stage has failed to materialize at local filling stations.
Pan-Atlantic Kompass reports that during the height of the Middle East crisis, Nigeria’s deregulation policy tied domestic fuel prices directly to global fluctuations.
Pump prices spiked from roughly ₦830 per litre to as high as ₦1,300 per litre.
With the peace truce driving crude costs down by more than 30%, industry operators suggest that retail petrol prices could logically drop back down to ₦900 per litre.
Instead, Dangote Petroleum Refinery took the lead by slashing its wholesale gantry price by ₦75, dropping it from ₦1,250 to ₦1,175 per litre.
It was gathered that Dangote Refinery is reluctant to drop fuel prices to ₦900 because the facility is still processing large volumes of expensive crude stock purchased when global prices were at their peak.
Meanwhile, several Nigerians, organisations have begun to lead the charge for lower fuel prices.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners, and petroleum products importers to immediately adjust their prices downward in line with the recent decline in global crude oil prices after the U.S-Iran deal.
According to the association, this adjustment would enable Nigerian consumers to benefit from the easing market conditions.
PETROAN noted that the drop in international crude prices presents a clear opportunity for operators in the downstream petroleum sector to reduce both ex-depot and retail pump prices, providing much-needed relief to households and businesses grappling with economic pressures.
Its National President, Billy Gillis-Harry, insisted that the realities of the international oil market should be reflected in local petroleum pricing.
“Brent crude has fallen to approximately $77 to $78 per barrel following the ceasefire agreement between the United States and Iran and expectations that oil exports through the Strait of Hormuz will gradually normalise,” the association said in a statement signed by its National Public Relations Officer, Joseph Obele.
“Market analysts have noted that crude oil prices are currently under downward pressure, although geopolitical risks remain. Current projections suggest that Brent crude may trade within the range of $75 to $82 per barrel next week, while West Texas Intermediate (WTI) crude is expected to trade between $72 and $79 per barrel,” it added.
Despite the drop in global benchmarks and recent domestic interventions, local pump prices have remained sticky. Two weeks ago, the Dangote Petroleum Refinery & Petrochemicals announced a reduction in the ex-depot prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).
The company stated that the latest adjustment underscored its commitment to making refined petroleum products more affordable and supporting economic activities across the country.
The ex-depot price of PMS was reduced to ₦1,250 per litre from ₦1,275 per litre, while the price of AGO was cut to ₦1,700 per litre from ₦1,800 per litre.
“The price review comes amid the refinery’s continued efforts to improve supply efficiency, deepen domestic refining, and provide cost relief to consumers and businesses that depend heavily on petroleum products for transportation, power generation, and industrial operations,” it stated.
Energy analyst Olabode Sowunmi highlighted that Nigeria’s fuel pricing structures are insulated by unique local factors, such as the Dangote Refinery’s naira-denominated crude allocations:
“Global price of crude oil is a factor but a factor internationally and not necessarily in Nigeria. So basically the issue will have to be from the point of refinery to where it touches the final person,”
“So basically our cost issues in terms of reflecting to the final person deal with our own logistics rather than the geopolitics that is taking place at the moment,” he explained.
When asked why internal logistics matter more during price spikes than cuts, Sowunmi said, “There could be various reasons, but it all comes down to the seller.”
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