Petrol Nears N1,400 as Dangote Price Hike Follows Global Oil Surge

Petrol prices across Nigeria are approaching N1,400 per litre after Dangote Petroleum Refinery raised its ex-depot price, amid a sharp rise in global crude oil costs driven by escalating tensions in the Middle East.

The refinery increased its gantry price from N1,200 to N1,275 per litre, with coastal supply rates also climbing, as Brent crude surged from $105 to $118 per barrel within days.

The spike follows continued uncertainty over the Strait of Hormuz, a critical oil transit route, as the United States and Iran failed to reach a ceasefire agreement. The situation has been further complicated by the United Arab Emirates’ exit from the Organisation of the Petroleum Exporting Countries.

Retail prices reacted swiftly. Filling stations in Lagos and across the South-West adjusted pump prices from around N1,250 to above N1,300 per litre, with some outlets selling as high as N1,350.

In northern regions and remote areas, prices have edged closer to N1,400, while border communities report figures nearing N1,700 due to supply constraints.

Market volatility has also disrupted supply chains. Sources indicated that the refinery briefly halted its pro forma invoice process, leading to a temporary suspension of petrol and diesel sales to marketers.

Meanwhile, Nigerian National Petroleum Company Limited has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes. Flagship Bonny Light rose by over $6 per barrel, with Forcados recording a similar increase.

Industry stakeholders warn that the upward pressure on crude prices is feeding directly into domestic fuel costs, as Nigeria continues to benchmark local refining against international prices.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria, cautioned that prices could exceed N1,500 per litre if the geopolitical crisis persists.

“This is what we have been introduced to, price volatility,” he said, urging the government to introduce measures to cushion the impact on consumers.

He added that despite increased revenue from higher crude prices, authorities had yet to implement relief mechanisms to mitigate rising transport and food costs.

Analysts and refiners have renewed calls for a domestic crude pricing model, arguing that reliance on international benchmarks such as Brent inflates costs for local refineries and undermines energy independence.

Economist Bismarck Rewane suggested that the government could consider supplying crude at fixed rates to domestic refineries in exchange for stable pump prices.

The surge in fuel costs comes against a backdrop of heightened global tensions, with Donald Trump reportedly favouring an extended blockade strategy aimed at curbing Iran’s oil exports, further tightening supply in already volatile markets.