Petrol nears N1,400/litre as Dangote hikes ex-depot price amid global oil shock

Pump prices of Premium Motor Spirit (petrol) are edging close to N1,400 per litre across parts of Nigeria following a fresh increase in ex-depot prices by the Dangote Petroleum Refinery, triggered by rising global crude oil prices.

 

The surge comes amid escalating tensions in the Middle East, particularly the ongoing US-Iran crisis and disruptions around the Strait of Hormuz, a critical global oil transit route.

 

Industry data shows that Dangote Refinery raised its petrol loading price from about N1,200 to N1,275 per litre, while coastal supply prices climbed to around N1,215 per litre.

 

The increase has already reflected at the pumps, with filling stations in Lagos and Ogun selling petrol between N1,315 and N1,350 per litre as of Wednesday. In northern regions and areas farther from supply hubs, prices are approaching N1,400 per litre, with some border communities reporting figures as high as N1,700.

 

The price adjustment follows a sharp rise in crude oil benchmarks, with Brent crude jumping from $105 to $118 per barrel within days, alongside Nigeria’s upward review of its official selling prices for crude grades.

 

Sources within the supply chain also indicated that a temporary halt in Dangote’s pro forma invoice processing disrupted fuel loading schedules, tightening supply and contributing to price pressure.

 

Reacting, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that continued geopolitical instability could push petrol prices beyond N1,500 per litre.

 

“This is what we have been introduced to—price volatility. The situation is worrisome, and unless there is peace in the Middle East, prices may continue to rise,” he said.

 

He also urged the Federal Government to implement measures to cushion the impact on consumers, noting that increased crude oil revenue should translate into relief for Nigerians.

 

Industry operators attributed the persistent high prices to structural issues within the supply chain, including multiple intermediaries and reliance on international pricing benchmarks.

 

The spokesperson for the Crude Oil Refiners Association of Nigeria, Eche Idoko, argued that crude supplied to local refineries should be priced using a domestic framework rather than global indices like Brent.

 

“If you benchmark with Brent, external shocks will continue to determine local prices. We need a pricing model that reflects Nigeria’s realities,” he said.

 

Economist Bismarck Rewane also suggested that the government could consider supplying crude to domestic refineries at controlled rates, with corresponding safeguards to stabilise pump prices.