Dangote Refinery Slashes Fuel Prices Amid Global Oil Price Drop

Dangote Refinery has reversed its recent fuel price hike, slashing the ex-gantry price of Premium Motor Spirit (PMS) by N75 to N1,200 per liter. The refinery had previously raised the price to around N1,275 per liter, citing pressure from volatile global oil markets. However, this swift downward review is a direct response to the sharp drop in international crude prices.

Brent crude, the global oil benchmark, has plunged to $95.05 per barrel, marking a 13% decline, while U.S. West Texas Intermediate (WTI) crude closed at $97.18 per barrel, recording nearly a 14% drop. This significant dip in global oil prices has provided relief to consumers and businesses alike, prompting the Dangote Refinery to adjust its pricing structure accordingly.

Impact of Trump’s Ceasefire Announcement on Global Oil Markets

Industry analysts have pointed to U.S. President Donald Trump’s announcement of a conditional two-week ceasefire with Iran as the key trigger for the dramatic shift in oil prices. The ceasefire, which effectively de-escalated tensions between the U.S. and Iran, has eased fears of immediate supply disruptions in the global oil market. Before the announcement, the threat of Iranian military actions had led to a surge in oil prices, with markets bracing for potential disruptions to vital Middle Eastern oil supply routes, particularly the Strait of Hormuz, which handles around 20% of the world’s oil supply.

Trump’s agreement to halt military actions against Iran and assist in clearing the traffic buildup in the Strait of Hormuz marked a significant de-escalation, alleviating concerns of immediate supply shortages. The ceasefire’s impact on oil prices was swift, with Brent and WTI crude futures both experiencing a notable decline.

A Global Sigh of Relief: Oil Price Volatility Eases

As of April 8, 2026, the effects of the ceasefire announcement were still being felt across the global oil market. The sharp drop in crude prices is a welcome development for countries like Nigeria, where fuel prices had been under pressure due to the volatility of international oil markets. Dangote Refinery’s decision to lower PMS prices reflects the broader stabilization in the market.

For now, the global oil market appears to have found temporary stability, though analysts remain cautious. Neil Shearing, Group Chief Economist at Capital Economics, emphasized that while the ceasefire provides a framework for oil tanker passage through the Strait of Hormuz, the exact terms of implementation remain unclear. The situation remains fluid, and further geopolitical developments could once again shift market dynamics.