Petrol prices near N1,400/Litre as global oil tensions intensify

This Video Is Trending Right Now →

By BizWatch Nigeria

Key Points

• Petrol prices approach N1,400 per litre nationwide
• Dangote refinery raises gantry price to N1,275 per litre
• Brent crude surges to $118 per barrel
• NNPC increases crude prices for May cargoes
• Marketers warn of possible N1,500/litre scenario

Main Story

Petrol prices across Nigeria are climbing steadily toward N1,400 per litre, driven by escalating global oil market tensions and supply uncertainties linked to the Middle East crisis.

The surge follows the failure of ceasefire negotiations between the United States and Iran, which has prolonged disruptions around the Strait of Hormuz, a critical global oil transit route.

As a result, Brent crude oil prices jumped from $105 to $118 per barrel within days, significantly raising the cost of refined petroleum products globally.

In response, Dangote Petroleum Refinery increased its petrol loading (gantry) price from N1,200 to N1,275 per litre, while coastal supply prices rose to approximately N1,215 per litre.

Market checks indicate that filling stations across Lagos and the South-West quickly adjusted pump prices, with petrol selling between N1,315 and N1,350 per litre, while more remote regions—particularly in the North—record prices nearing N1,400 per litre.

Supply Disruptions and Market Reaction

Sources familiar with refinery operations revealed that the Dangote refinery temporarily halted its pro forma invoice processing, disrupting supply scheduling and leading to a brief suspension of petrol and diesel sales to marketers.

At the same time, Nigerian National Petroleum Company Limited raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes.

According to industry reports:

• Bonny Light crude increased by $6.13 per barrel
• Forcados crude rose by $7.01 per barrel

These increases are expected to further raise refining costs and translate into higher domestic fuel prices.

What’s Being Said

The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that persistent volatility could push petrol prices even higher.

“This is what we have been introduced to—price volatility. Fuel prices may exceed N1,500 per litre if the Middle East crisis continues,” he said.

He also expressed concern over the lack of government intervention, noting that rising crude oil revenues should translate into relief measures for consumers, particularly in transportation and food costs.

Gillis-Harry further highlighted structural issues within Nigeria’s oil sector, emphasizing the need to:

• Increase domestic crude production
• Expand refining capacity
• Stabilize host communities to attract investment

He noted that despite local refining efforts, fuel pricing remains tied to international benchmarks, limiting the impact of naira-based crude transactions.

Regional Price Variations

Fuel prices continue to vary significantly by location:

• Lagos and Ogun: N1,315 – N1,350 per litre
• Northern regions: up to N1,400 per litre
• Border communities: as high as N1,700 per litre due to supply constraints

What’s Next

Analysts expect petrol prices to remain volatile in the near term, influenced by:

• Ongoing geopolitical tensions in the Middle East
• Crude oil price fluctuations
• Exchange rate pressures
• Domestic supply chain disruptions

Unless global tensions ease or local supply stabilizes, Nigeria may face continued upward pressure on fuel prices, with broader implications for inflation and cost of living.