Petrol prices in Nigeria are approaching 1,400 naira per liter in many areas as rising global oil prices, driven by tensions between the United States and Iran, ripple through the country’s energy market.
The price surge follows the continued standoff over the Strait of Hormuz, a key global oil transit route, and comes as United Arab Emirates exits Organization of the Petroleum Exporting Countries adding further uncertainty to global supply.
Benchmark Brent crude climbed from $105 per barrel earlier in the week to $118 on Wednesday, pushing up costs across Nigeria’s downstream sector.
The Dangote Petroleum Refinery raised its petrol loading price from 1,200 naira to 1,275 naira per liter, according to industry data and company sources. Coastal supply prices also increased to about 1,215 naira per liter.
The refinery also briefly halted its pro forma invoice system on Tuesday, disrupting supply scheduling and temporarily stopping petrol and diesel sales to marketers, sources said.
Meanwhile, Nigerian National Petroleum Company Limited increased official selling prices for all 37 Nigerian crude grades for May cargoes. Its flagship Bonny Light crude rose by $6.13 per barrel, while Forcados gained $7.01.
Filling stations quickly adjusted pump prices, with petrol selling between 1,315 and 1,350 naira per liter in parts of Lagos and neighboring Ogun state. Prices have climbed even higher in northern regions and remote areas, nearing 1,400 naira per liter, with some border communities reporting costs close to 1,700 naira due to supply constraints.
Industry stakeholders warn the situation could worsen. Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association of Nigeria, said continued instability in the Middle East could push petrol prices above 1,500 naira per liter.
He attributed the volatility to global pricing pressures and urged the government to introduce measures to cushion the impact on consumers, noting that higher crude prices could provide fiscal space for intervention.
Local refiners have also called for a shift away from international pricing benchmarks such as Brent crude when supplying oil to domestic refineries, arguing that the current system inflates costs and undermines local production.
Economist Bismarck Rewane suggested the government could consider fixed-price crude supply arrangements for domestic refineries to stabilize fuel prices.
The price surge follows months of increases, with petrol rising sharply since February, when Brent crude traded at about $66 per barrel. The escalation intensified after disruptions linked to tensions in the Middle East affected global supply routes.
In Washington, Donald Trump has signaled plans to maintain pressure on Iran, including a naval blockade aimed at curbing its oil exports. U.S. officials say the strategy is beginning to strain Iran’s energy sector, though it has also contributed to tightening global supply.
Analysts say Nigeria, Africa’s largest oil producer, is benefiting from higher crude prices but continues to face domestic challenges, including reliance on international pricing and limited refining capacity, which expose consumers to global market shocks.
