The Dangote Petroleum Refinery, owned by Africa’s richest man Aliko Dangote, has reduced its gantry prices for Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and Aviation Turbine Kerosene (jet fuel), following a decline in crude oil prices after tensions in the Middle East eased.

According to recent reports, the refinery cut the gantry price of petrol by N75 ($0.05) per liter to N1,175 ($0.86) from N1,250 ($0.92). The coastal price per metric ton was also lowered to N1,495,215 ($1,100.16) from N1,595,790 ($1,174.60). Diesel prices were reduced by N100 ($0.07) per liter to N1,600 ($1.17) from N1,700 ($1.25), while aviation fuel prices were cut by the same amount to N1,450 ($1.06) per liter from N1,550 ($1.14).

Lower fuel costs follow US-Iran agreement

The latest reductions came as crude prices retreated after signs of easing tensions between the United States and Iran. Brent crude fell below $79 a barrel on Thursday, extending losses that have taken prices to their lowest levels since early March after reports that Washington and Tehran digitally signed an interim peace agreement. During the conflict, Brent climbed to $120 a barrel from below $70 before the hostilities began, driving up fuel prices around the world.

A U.S. official confirmed that the memorandum of understanding had taken effect, although it remains unclear whether Iran has begun steps to fully reopen the Strait of Hormuz. Reports said the agreement includes the reopening of the strategic shipping route and the removal of sanctions on Iranian oil exports, while negotiations over nuclear issues and possible additional economic incentives are expected to continue.

Engineers optimize Dangote Refinery for record production

The decline in crude prices comes as the Dangote refinery continues to raise output. Earlier this month, independent process licensors confirmed during an official performance test that the facility processed 700,000 barrels of crude a day, exceeding its nameplate capacity of 650,000 barrels a day and reinforcing its position as the world’s largest single-train refinery.

The result highlighted the refinery’s ability to run above its designed capacity after engineers optimized operations across the complex to handle additional crude supplies. For Nigeria, which has long relied on imported fuel, the performance marks another step toward strengthening domestic fuel supply and reducing dependence on imports.

Dangote outlines ambitious 2028 growth strategy

Dangote plans to expand the refinery’s capacity to 1.4 million barrels a day by 2028, a move expected to support industrial activity, create jobs and improve Nigeria’s trade balance. In addition to transportation fuels, the company is increasing production of liquefied petroleum gas and feedstocks such as polypropylene used in packaging, while also preparing to supply linear alkylbenzene to the regional detergent industry.

International investors are also closely watching the business as it moves toward a planned $50 billion initial public offering that could become the largest stock market debut in Africa. Ahead of the listing, the refinery is adapting its operations to process as many as 130 different crude grades, giving it greater flexibility to source feedstock and respond to shifts in global oil markets.