Nigeria Pressures Fuel Marketers to Lower Prices as Crude Drops

The Nigerian government is pressuring petroleum marketers to lower retail petrol prices following a significant decline in global crude benchmarks. Between June 27 and July 5, 2026, the Nigerian National Petroleum Company Limited reduced its pump price to N1,150 per litre, while the Dangote Refinery lowered its gantry price to N1,075 per litre. Despite these cuts, officials noted that retail prices remained high, exceeding N1,100 in Lagos and N1,300 in Northern Nigeria.

Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri convened a stakeholders meeting in Abuja to address the disconnect between international prices and domestic pumps. Lokpobiri stated that Brent crude fell from a peak of $118 per barrel to below $70, and argued that deregulation is not a license for "excessive profiteering." He directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify market surveillance and enforce pricing transparency to ensure lower replacement costs reach consumers.

In response to the government's pressure, Dangote Refinery and several major depots further reduced ex-depot prices on July 7. The Independent Petroleum Marketers Association of Nigeria reported nationwide reductions of approximately N125 per litre, suggesting prices could eventually drop below N800 per litre as marketers purchase more directly from the Dangote refinery. While stakeholders agreed to further cuts, some industry leaders warned that marketers cannot be compelled to sell fuel below cost.