Nigeria’s domestic fuel market is facing renewed pressure after the Dangote Petroleum Refinery increased its gantry prices for petrol and diesel, citing global oil market dynamics and geopolitical tensions.
A senior official at the refinery confirmed on Tuesday that the adjustment reflects current international crude oil benchmarks. The price of petrol has been raised by N75 per litre to N1,275, representing a 5.02 per cent increase, while diesel rose more sharply by N200 per litre to N1,950.
The new rates mark a notable jump from last month’s prices of N1,200 per litre for petrol and N1,750 for diesel. Analysts warn that diesel prices are edging closer to the N2,000 threshold, a development likely to intensify cost pressures across key sectors of the economy.
According to the refinery source, the increase is largely driven by external factors, particularly rising tensions in the Middle East, which have disrupted global oil supply expectations and pushed crude prices upward.
Industry data from Petroleumprice.ng aligns with the refinery’s pricing update, confirming a 5.02 per cent increase in petrol prices at the gantry level.
The price hike comes despite earlier expectations that increased local refining capacity would stabilise domestic fuel costs. However, experts note that Nigeria’s deregulated downstream sector remains highly sensitive to global oil price movements, exchange rate fluctuations, and logistics expenses.
Market watchers anticipate that fuel marketers will likely pass on the higher costs to consumers, potentially triggering another round of pump price increases nationwide in the coming days.
The situation underscores Nigeria’s continued exposure to international oil market volatility, even as the country expands its refining capabilities. While the Dangote refinery—Africa’s largest—was expected to reduce reliance on imported fuel, analysts say domestic prices will remain linked to global benchmarks for the foreseeable future.
With households and businesses already grappling with elevated energy and transportation costs, the latest increase may further strain consumer spending and add to inflationary pressures in the economy.
