US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70

The sharp decline in global crude oil prices following the ceasefire agreement that ended months of hostilities between the United States and Iran has renewed questions over why petrol prices in Nigeria remain around N1,200 per litre despite the easing of pressures that had pushed up energy costs during the conflict. Brent crude, the international benchmark against which Nigeria’s Bonny Light is priced, has fallen to around $70 per barrel from a peak of about $126 recorded during the height of the conflict, representing a decline of more than 42 per cent. The latest oil price slump has effectively erased the war premium that had built into the market amid fears that hostilities could disrupt supplies passing through the Strait of Hormuz, a critical shipping route through which nearly one-fifth of the world’s crude and liquefied natural gas shipments transit. The three-month conflict, which began on February 28, 2026, sent shockwaves through global energy markets as traders feared a blockade of the strait and a possible escalation involving Gulf producers. The uncertainty pushed crude prices sharply higher, with Brent crude climbing from around $68 per barrel before the crisis to above $120 and peaking near $126 per barrel in April. The rise translated into higher prices for refined products worldwide and put upward pressure on petrol prices in importing countries, including Nigeria. Before the outbreak of the conflict, petrol sold for between N830 and N900 per litre across much of Nigeria. As crude prices surged by approximately 85 per cent, pump prices climbed to around N1,360 per litre, representing an increase of about 54 per cent. However, while crude oil has surrendered much of its war-induced gains, domestic petrol prices have been far slower to follow suit.

Analysts say the discrepancy highlights an asymmetry that has long characterized fuel markets globally—what experts describe as the “rockets and feathers” effect, where prices rise like rockets when crude increases but descend like feathers when oil prices retreat. The de-escalation of tensions and diplomatic efforts between Washington and Tehran have eased concerns over supply disruptions, leading to a broad sell-off in oil markets. Additional downward pressure came from expectations that Iranian exports could return more fully to international markets and that shipping through the Strait of Hormuz would normalize. Concerns about weaker global demand and rising output from non-OPEC producers have also contributed to the decline. Based on analysis of the price transmission mechanism, when crude prices climbed from $68 to $126 per barrel, petrol prices rose from roughly N850 to N1,300 per litre. Using the same mechanism, the current decline in crude prices of more than 41 per cent should ordinarily place petrol prices between N900 and N1,000 per litre. However, analysts caution that crude oil accounts for only part of the final cost of petrol. Exchange rates, shipping charges, storage costs, transportation expenses, dealer margins, and taxes all influence the retail price. Even after accounting for these variables, energy experts say Premium Motor Spirit should realistically retail around N1,000 per litre.

READ ALSO:

• Police Dismiss Viral Katsina Video, Say Armed Men Are Vigilantes, Hunters
• Jetour Puts Customer Peace of Mind at the Centre of X70 PHEV Rollout
• Mike Ozekhome Barred from Using SAN Title as LPPC Orders Suspension

Following the de-escalation of tensions, the Dangote Petroleum Refinery cut its petrol gantry price by N75 per litre from N1,250 to N1,175, effective June 16, and also lowered diesel and aviation fuel prices. The refinery attributed the reduction to improved market fundamentals following the de-escalation of tensions in the Middle East. It also lowered its coastal supply price from N1,595,790 to N1,495,215 per metric tonne, reducing procurement costs for marketers. The move strengthened expectations that pump prices would decline further. However, many Nigerians argued that the reductions did not fully reflect the sharp decline in crude oil prices. A source within the Dangote Group noted that the refinery was still observing market developments while processing crude purchased during the crisis period, adding that prices could still drop to as low as N900 per litre, “but we still have the expensive crude in our tanks.”

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, explained that lower ex-depot prices are already easing pressure on marketers and improving their capacity to stock products. According to him, the decline in supply costs has reduced the amount of working capital required to sustain operations. Ukadike noted that marketers who previously struggled to finance product purchases would now be able to increase stock levels, thereby improving product availability across retail outlets. Ukadike also dismissed concerns that marketers could hoard products in anticipation of future price increases, noting that intense competition within the deregulated downstream sector would make such practices difficult to sustain. “Competition will force marketers to sell at prevailing market prices. Nobody can afford to hold products indefinitely because other operators will undercut them,” he said. He projected that petrol could sell for between N1,200 and N1,250 per litre in Lagos once new stock enters the market, while prices may remain slightly higher in other parts of the country due to transportation costs. Ukadike urged consumers to be patient, noting that immediate reductions would expose marketers to losses on existing stock.

READ ALSO:

• Kano Court Jails Man for 20 Years for Raping 40 Women, Including an 85-Year-Old Woman
• Senate Passes State Police Bill, Awaits Ratification by State Assemblies
• Kwankwaso Threatens N10bn Lawsuit Against Primate Ayodele Over Alleged Defamation

The issue is not peculiar to Nigeria. In the United States, President Donald Trump has ordered the Department of Justice to investigate major oil companies over allegations that they are failing to reduce pump prices in line with falling crude oil costs. In a post on Truth Social, Trump accused oil companies of exploiting consumers, writing: “The big Oil Companies are not dropping their price at the pump commensurate with the sharply lower prices they are paying for Oil. Those prices are dropping like a rock! In other words, customers are being ‘gouged’.” The American Petroleum Institute rejected allegations of price manipulation, arguing that retail fuel prices do not instantly mirror changes in crude oil prices because refining costs, inventories and supply chain dynamics influence final prices. Analysts describe this phenomenon as the “rockets and feathers” effect.

Industry observers say increased liquidity among marketers could intensify competition and ultimately accelerate the transmission of lower crude prices to consumers. They note that the growing influence of Dangote Refinery, coupled with increasing rivalry among importers and independent marketers, is changing pricing dynamics in the downstream sector. Some analysts believe that if Brent crude remains below $75 per barrel and geopolitical stability is sustained, petrol prices could gradually decline below N1,000 per litre and possibly approach N900 per litre in the coming days. The expected decline could provide much-needed relief for households and businesses battling elevated transportation and energy costs. Since the removal of subsidy by President Bola Tinubu in May 2023, petrol prices have remained one of the major drivers of inflation, affecting food prices, manufacturing costs and the overall cost of living. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on refiners, depot owners, and importers to reduce fuel prices following the decline in global crude prices, urging the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing import licences to qualified marketers to encourage competition. However, experts caution that the ceasefire is not yet permanent—a 60-day extension has been agreed while negotiations continue over Iran’s nuclear programme. Market observers also note that the restoration of full oil flows through the Strait of Hormuz may take months, as vessel operators and insurers remain cautious, preferring to observe sustained safe transits before re-engaging the route.

US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70

Jetour Puts Customer Peace of Mind at the Centre of X70 PHEV Rollout

Jetour Nigeria has reinforced confidence in its X70 Plug-in Hybrid Electric Vehicle (PHEV), highlighting a comprehensive after-sales support system, nationwide service network and extended warranty package designed to deliver long-term reliability and peace of mind for owners.
The automaker said the X70 PHEV is not only engineered for fuel efficiency and lower emissions but is also backed by readily available genuine spare parts, dedicated technical support and trained service personnel, underscoring its commitment to customer satisfaction beyond the point of sale.

The auto company lists its accredited dealers spread across Nigeria as Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Kojo Motors, Germaine Auto Centre, Tab Autos Limited, R. T. Briscoe Motors and Mandilas Autos.

To further boost customer confidence, the brand is offering an extensive warranty of five years or 150,000 kilometres, whichever comes first.

The X70 PHEV is engineered to reduce ownership concerns commonly associated with electrified vehicles. Its multiple charging options—fast charging, slow charging, engine charging and brake force charging—help minimize reliance on external charging infrastructure while ensuring the battery remains optimally charged during regular driving.

READ ALSO:

• EFCC to Arraign US-Blacklisted Lagos BDC Operator Over Alleged ISIS Financing
• US-Iran Ceasefire: Why Petrol Still Costs N1,200/Litre Despite Crude Crash to $70
• Police Dismiss Viral Katsina Video, Say Armed Men Are Vigilantes, Hunters

According to Jetour, this design not only improves convenience but also reduces long-term maintenance costs.Supporting the vehicle’s reliability is a robust hybrid powertrain that combines a 1.5-litre turbocharged engine with plug-in hybrid electric vehicle technology, a 19.43kWh battery and dedicated hybrid transmissions.

Jetour notes that the system is built for durability and efficiency, helping owners save on fuel while benefiting from reduced emissions and improved performance.In addition to mechanical reliability, Jetour’s after-sales framework extends to vehicle safety systems and advanced technology.

Features such as electronic stability systems, multiple airbags, driver-assistance technologies and smart electronic components are supported by trained technicians and specialized diagnostic tools within the brand’s service network.

Jetour’s growing reputation in the Nigerian market was further highlighted by its recognition as the “Fastest Growing Auto Brand of the Year” at the 2024 Nigeria Auto Journalists Association awards.

The honour, according to the organizers, reflects the brand’s rapid acceptance, strong customer patronage and commitment to innovation and service excellence.

With the X70 PHEV, Jetour continues to pair advanced technology with dependable after-sales support, positioning itself as a brand focused not only on efficient mobility but also on long-term customer value and peace of mind.

Jetour Puts Customer Peace of Mind at the Centre of X70 PHEV Rollout

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

The Managing Director and Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has described the resolution of the long-running concession dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, as a major breakthrough that will strengthen investor confidence and reshape public-private partnership (PPP) frameworks in Nigeria’s aviation sector.

Kuku made the remarks at the African Air Transport Convention & Expo 2026 in Lomé, Togo, where she emphasized that successful aviation infrastructure delivery depends not only on funding, but also on strong institutions, regulatory certainty, and consistent policy implementation.

Her comments come after confirmation that the federal government has finally resolved a nearly 20-year concession dispute with Bi-Courtney Aviation Services Limited (BASL), operators of MMA2.

The MMA2 concession dispute, which began in the early 2000s, has been one of the most controversial cases in Nigeria’s aviation sector, shaping discussions around airport privatization and PPP agreements. According to reports, the resolution includes a settlement in which BASL will forgo a N130 billion judgement debt, while retaining responsibility for developing a conference centre opposite the MMA2 terminal. The deal effectively ends years of legal battles, regulatory disagreements, and operational uncertainty surrounding one of Nigeria’s most important airport infrastructure projects.

Kuku described MMA2 as one of the most widely discussed concession projects in Nigeria’s aviation history, noting that it generated prolonged uncertainty for investors and policymakers. She said the conclusion of the dispute sends a strong signal to investors that Nigeria is committed to stabilising its aviation PPP framework and improving contract enforcement.

READ ALSO:

• Naira Strengthens Again, Narrowing Gap with Official Exchange Rate
• Mbappé Chases Messi’s Record as France Beat Iraq to Reach World Cup Last 32
• “Unreal”: Bangladesh Explodes as Messi Shatters World Cup Record – VIDEO

“It’s now been resolved. What that means is that it provides better investor confidence for those that are looking to drive PPP projects,” she said. She added that future concession agreements will be structured to ensure fairness between government and private investors, reducing the risk of prolonged disputes.

Industry analysts say the resolution could unlock new private sector participation in airport development projects, including terminal upgrades, cargo expansion, and service modernization. They also note that resolving long-standing disputes like MMA2 helps reduce perceived regulatory risk, which has historically discouraged foreign and domestic investment in Nigeria’s aviation infrastructure.

Beyond the MMA2 settlement, Kuku highlighted broader challenges facing aviation development across Africa, including policy inconsistency, funding gaps, and project delivery risks. She called for closer collaboration between governments, development finance institutions, and private investors to bridge Africa’s aviation infrastructure deficit.

Rather than creating new financing institutions, she recommended strengthening existing banks by establishing specialised aviation desks with technical expertise to support structured investments. Kuku also stressed the importance of early-stage engagement between project developers and financiers to ensure bankable infrastructure projects.

Kuku further revealed that FAAN has developed a multi-phase infrastructure roadmap covering short-, medium-, and long-term priorities across Nigeria’s airport network. In the short term, the focus is on stabilising airport operations and improving passenger experience.

Medium- and long-term plans include terminal upgrades, airside development, cargo infrastructure expansion, and modernization of safety systems. She added that FAAN is also evaluating secondary airports and exploring incentive mechanisms, including guarantee schemes, to encourage airline operations on underserved routes.

With the MMA2 concession dispute now resolved after 20 years, stakeholders say attention will shift to implementation, compliance monitoring, and ensuring that the settlement translates into improved efficiency and investor trust in Nigeria’s aviation sector.

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook