Oil falls below $80 as Dangote cuts petrol, diesel prices

Global oil prices fell below the $80 per barrel threshold on Thursday as easing geopolitical tensions between the United States and Iran reduced fears of supply disruptions, while the Dangote Petroleum Refinery lowered the ex-depot prices of petrol and diesel in a move expected to moderate domestic fuel costs.

Brent crude, Nigeria’s benchmark, slipped two cents to $78.75 per barrel, extending losses after a five per cent decline earlier in the week, while the United States benchmark, West Texas Intermediate (WTI), dropped 35 cents to $75.42 per barrel.

The decline followed renewed diplomatic engagement between Washington and Tehran, raising market expectations that a potential resolution to tensions could safeguard crude supplies from the Middle East.

Although Iranian officials denied that formal peace negotiations were underway, United States President Donald Trump said American officials had held extensive discussions with Iranian representatives and described the talks as constructive, while warning of severe consequences should diplomacy fail.

Investor sentiment also improved on expectations that the Strait of Hormuz, through which nearly one-fifth of global crude oil and liquefied natural gas shipments pass, would remain open, easing concerns over disruptions to international energy supplies.

Further downward pressure on prices came after the United States Energy Information Administration reported an unexpected increase of 2.5 million barrels in commercial crude inventories to 407 million barrels, contrary to analysts’ expectations of a 1.5 million-barrel drawdown.

Despite the softer market, geopolitical risks continued to provide some support for prices after Yemen’s Houthi movement announced a maritime embargo on Saudi ports and vessels and claimed responsibility for an attack on a Saudi oil tanker near Yanbu. Renewed attacks on shipping infrastructure in the Black Sea also sustained concerns over global commodity trade.

Against the backdrop of weaker crude prices, the Dangote Petroleum Refinery announced a reduction in the ex-depot price of Premium Motor Spirit (petrol) by N50 to N1,165 per litre from N1,215 per litre.

The refinery also reduced the ex-depot price of diesel by N80, bringing it down to N1,570 per litre from N1,650 per litre.

The new pricing structure took effect from August 6, 2026.

Dangote Refinery said the adjustment reflected operational efficiencies and formed part of efforts to improve energy affordability, guarantee stable domestic fuel supply and strengthen Nigeria’s energy security by reducing dependence on imported petroleum products.

The company said the latest reduction is expected to lower operating costs for businesses, improve access to refined products and support broader economic activity.