Rising instability in the Middle East and its effects on the global oil market have prompted the Dangote Petroleum Refinery to revise upward the loading prices of petrol and diesel, placing additional strain on Nigerians and business operators nationwide.
A senior source within the refinery, who spoke privately on Tuesday evening, disclosed that the price review was necessitated by shifts in international crude oil pricing and prevailing global market conditions. The source noted that such external influences continue to shape domestic fuel pricing.
With the new adjustment, the ex-depot price of petrol increased by N75 per litre to N1,275, reflecting about a five per cent rise. Diesel recorded a steeper jump, climbing by N200 per litre to N1,950. Compared to the previous month’s rates of N1,200 for petrol and N1,750 for diesel, the new figures suggest diesel prices are nearing the N2,000 mark at filling stations.
The insider explained that the development mirrors current global realities, particularly the tensions in the Middle East, which play a significant role in determining crude oil prices. According to the source, any disruption in that region has direct consequences for refined petroleum product costs worldwide.
Industry data from Petroleumprice.ng also confirmed the increase, showing that petrol experienced a 5.02 per cent rise at the gantry level, in line with the refinery’s adjustments.
The price hike comes despite earlier expectations that local refining, especially from the Dangote facility, would help stabilise fuel costs within the country. However, experts maintain that Nigeria is still highly exposed to international oil price fluctuations due to its dependence on global benchmarks.
As a result of the increase, fuel marketers are likely to raise pump prices soon, transferring the added burden to consumers. This could lead to higher transportation and production costs, worsening the financial pressure on households and businesses.
The global oil market has remained unpredictable in recent times, largely due to uncertainties surrounding supply chains in the Middle East, a region responsible for a large portion of the world’s crude output. Any perceived or actual disruption often leads to spikes in prices, affecting economies worldwide.
Although Nigeria is an oil-producing nation, its downstream sector operates under a deregulated framework where fuel prices are dictated by market dynamics. Key factors such as international crude prices, foreign exchange rates, logistics, and operational expenses all influence local pricing.
While the Dangote refinery. Africa’s largest was projected to reduce reliance on imported fuel and bring stability to the market, analysts argue that price fluctuations will persist as long as domestic pricing remains tied to global oil trends.
The latest increase has also heightened concerns about affordability, as many Nigerians are already dealing with elevated energy and transport costs. Experts warn that continued rises in fuel prices could deepen inflationary pressures and hinder economic growth.
