US-Iran peace deal to pull down petrol price to N900 per litre in Nigeria

As the United States of America and Iran in the middle east struck peace deal to end war, the effect could pull down the price of
Premium Motor Spirit (PMS), popularly known as petrol to around N900 per litre in Nigeria.

Nigerians are in high expectations to see the PMS mellow down as the prolonged war took toll on their earnings with life difficult to live as due to hugh cost fuel and aviation fuel, too.

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The surge in prices of PMS and aviation fuel follows the shut of the Strait of Hormuz by the Islamic Republic of Iran amid Israeli-US bombings.

The shutdown has derailed economies of the middle east and around the world with China cut down its fuel imports to 40%.

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According to Nigeria oil market report lately, crude oil prices, which climbed sharply during the conflict, have dropped significantly as investors react positively to reports of a ceasefire framework and plans to reopen the Strait of Hormuz, one of the world’s busiest oil shipping routes.

On Sunday, 14th June, 2026, Donald Trump in a post on Truth Social, confirmed that agreement has been reached to end war on all fronts including Lebanon.

Industry players believe the development could eventually reflect in domestic fuel prices, especially as crude oil remains the major raw material for refined petroleum products.

Amid the war, crude oil rose from $80 $120 per barrel, while on the domestic front, the cost of full increased from N830 to N1300 per litre.

Diesel and aviation fuel also recorded major increases, putting pressure on businesses and transport operators.

Feelers in the early early hours on Monday 15th June, 2026 indicated that local refiners, including the Dangote Petroleum Refinery, may review their prices if the downward movement in crude oil is sustained.

Dangote Refinery reacting to the global oil market trend previously reduced its petrol loading price from N1,275 per litre to N1,250 per litre after crude prices softened.

Diesel prices were also adjusted downward during the same period.

A source familiar with operations at the refinery said another price cut is possible if the market remains stable. However, the source explained that a large volume of crude purchased at earlier, higher prices is still being processed, which could slow the pace of any immediate reduction.

According to the source, petrol selling at N900 per litre is achievable if global oil prices continue to decline and the market fully adjusts to the new realities.

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