Cost Of Living Surge: Petrol Prices Jump As Middle East Crisis Sparks Oil Rally

The pump price of Premium Motor Spirit (petrol) is approaching ₦1,400 per litre in several parts of Nigeria, as escalating tensions between the United States and Iran continue to disrupt global crude oil markets.....KINDLY READ THE FULL STORY HERE▶

The price surge follows the collapse of efforts to reach a ceasefire agreement that would have reopened the Strait of Hormuz, a key global oil shipping route.

As the Middle East crisis persists—alongside reports of the United Arab Emirates’ exit from the Organisation of the Petroleum Exporting Countries (OPEC)—global oil prices have continued to climb.

Brent crude, which traded at $105 per barrel on Monday, rose sharply to $118 by Wednesday.

In response to the increase in crude prices, the Dangote Petroleum Refinery raised its petrol gantry price from ₦1,200 to ₦1,275 per litre. Data from Petroleumprice.ng and confirmation from a refinery official indicated that coastal supply prices also increased to ₦1,215 per litre.

A source familiar with the development disclosed that the refinery temporarily halted its pro forma invoice processing around 4 p.m. on Tuesday, disrupting normal supply operations and leading to a suspension of petrol and diesel sales to marketers.

NNPC adjusts crude pricing

Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) reportedly increased the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, according to Oilprice.com.

The report noted that Nigeria benefited from rising global oil prices, with Bonny Light crude increasing by $6.13 per barrel compared to April, while Forcados rose by $7.01 per barrel.

Analysts warn that the development could further raise crude acquisition costs for local refiners, potentially pushing up fuel prices.

Fuel prices rise nationwide

Across Nigeria, filling stations quickly adjusted pump prices upward, with petrol rising from about ₦1,250 to over ₦1,300 per litre in Lagos and other South-West states.

In Lagos and Ogun, prices ranged between ₦1,315 and ₦1,350 per litre. Stations along the Lagos-Ibadan Expressway, including NNPC outlets at Mowe/Ibafo, sold petrol at around ₦1,315 per litre, while Mobil outlets priced it at about ₦1,320 per litre.

Prices were even higher in northern parts of the country and regions farther from the Dangote refinery, where petrol reportedly approached ₦1,400 per litre.

In some border communities in Ogun State, residents said prices climbed as high as ₦1,700 per litre due to limited supply.

Industry concerns over further hikes

The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that fuel prices could continue to rise if global tensions persist.

He said marketers were struggling with rapid price fluctuations, making planning difficult, and urged government intervention to stabilize the market.

He also suggested that gains from rising crude prices should be used to reduce transportation and living costs.

Gillis-Harry further warned that petrol prices could exceed ₦1,500 per litre if the geopolitical crisis continues unresolved.

Calls for local pricing reforms

Industry stakeholders are calling for increased local refining capacity and a shift away from international crude pricing benchmarks.

They argue that domestic refineries should not be fully tied to global pricing structures, as this increases costs and limits competitiveness.

Spokesperson for the Crude Oil Refiners Association of Nigeria, Eche Idoko, said pricing should reflect a local framework rather than Brent benchmarks, which include global market factors that may not apply to domestic transactions.

Economist Bismarck Rewane also suggested that government could stabilize prices by agreeing to supply crude to local refineries at fixed rates, provided refined product prices remain stable.