Why petrol prices stay above N1,200 despite crude oil drop to $73

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Global crude oil prices have fallen to about $73 per barrel after a peace agreement between the United States and Iran. But petrol prices in Nigeria remain high. Motorists are still paying over N1,200 per litre at many filling stations.

Data from Oilprice.com shows crude dropped from $76.75 per barrel on Tuesday to $73.50 on Wednesday, June 23, 2026. That is the lowest level since the US-Iran conflict began earlier this year. The decline followed a peace deal reached on June 14.

Despite this, petrol has not become cheaper. Many Nigerians expected prices to fall below N1,000 per litre. That has not happened.

Industry sources say refiners are still processing crude oil bought at higher prices during the Middle East conflict. Those purchases were made when crude was near $120 per barrel. Until that expensive stock is cleared, pump prices will stay high.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged refiners, depot owners, and importers to reduce prices. They say lower crude costs should lead to lower petrol prices.

The Dangote Refinery recently cut its ex-depot price by N75 per litre. It moved from N1,250 to N1,175. Some importers also adjusted their prices downward. But retail pump prices remain above N1,200.

Before the peace deal, Dangote Refinery had increased its gantry price from N774 to N874 per litre. That happened when crude rose above $84 per barrel. Petrol prices at filling stations surged from around N830 to current levels.

Consumers are waiting for further price cuts. But analysts say a full drop will take time. The expensive crude already in the system must be sold first.

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