The price of Premium Motor Spirit (petrol) is approaching N1,400 per litre across parts of Nigeria following a fresh hike by the Dangote Petroleum Refinery, driven by rising global crude oil prices and geopolitical tensions.
The increase comes as the ongoing standoff between the United States and Iran continues to disrupt global oil supply, particularly with concerns over the Strait of Hormuz. Adding to market uncertainty is the recent exit of the United Arab Emirates from the Organization of the Petroleum Exporting Countries.
Global oil prices have surged sharply, with Brent crude rising from $105 to $118 per barrel within days. In response, the Dangote refinery raised its petrol gantry price from N1,200 to N1,275 per litre, while coastal supply prices climbed to about N1,215 per litre.
The development has had an immediate ripple effect across retail outlets. Filling stations in Lagos and other South-West states quickly adjusted pump prices from around N1,250 to over N1,300 per litre, with some locations selling between N1,315 and N1,350.
In northern regions and areas farther from supply hubs, prices have climbed even higher, nearing N1,400 per litre, while some border communities report prices approaching N1,700 due to supply constraints.
Further compounding the situation, the Nigerian National Petroleum Company Limited has increased official selling prices for Nigerian crude grades, including Bonny Light and Forcados, reflecting gains from the global oil price rally.
Industry stakeholders warn that the upward trend may persist. National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, noted that continued instability in the Middle East could push petrol prices beyond N1,500 per litre.
He also highlighted the challenges posed by price volatility, urging the government to introduce measures to cushion the impact on citizens, particularly in transportation and food costs.
Experts further point to structural issues in Nigeria’s fuel distribution system, including reliance on international pricing benchmarks and the role of intermediaries, which continue to amplify price fluctuations.
Unless global tensions ease and local supply mechanisms improve, analysts say Nigerians may continue to face rising fuel costs in the coming weeks.
