Nigerian fuel marketers promptly raise petrol prices over Iran war

Nigerians are paying sharply higher prices for petrol after a spike in global crude oil driven by escalating conflict in the Middle East rippled through the country’s fuel market.

Brent crude has climbed above $80 a barrel this week, as fighting involving the U.S., Israel and Iran raised fears of supply disruptions.

The rally has quickly filtered into domestic pump prices in Africa’s largest oil producer, where refiners and marketers now adjust rates in line with international benchmarks.

The immediate trigger was a ₦100 increase in the ex-depot price set by Dangote Petroleum Refinery, which raised its gantry price to ₦874 per litre from ₦774. Loading briefly paused before resuming at the new rate, according to industry trackers. The company did not respond to a Pluboard inquiry on the new price.

The Nigerian National Petroleum Company Ltd. (NNPCL) followed, lifting pump prices at its Abuja retail outlets to ₦960 per litre from ₦875. Independent marketers in the capital and other cities are selling between ₦950 and ₦980 per litre. In parts of northern Nigeria, prices have reportedly climbed above ₦1,000.

The adjustments underscore how exposed Nigerian consumers remain to global energy shocks despite the start-up of the 650,000 barrel-a-day Dangote refinery, which was billed as a turning point for domestic fuel supply.

Paul Alaje, chief economist at SPM Professionals, said further increases are possible if crude continues to rise. “As crude oil goes up, the cost of PMS, diesel and aviation fuel will follow,” he said on Channels Television, projecting prices could approach ₦1,000 per litre nationwide if tensions persist.

Industry Warning

Industry groups, including the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria, had warned earlier this week that higher global prices would translate into steeper retail rates.

For Nigeria, the oil rally could bolster government revenues and foreign exchange earnings, but rising pump prices threaten to stoke inflation, squeeze household incomes and raise transport and food costs in an economy still adjusting to fuel subsidy removal three years ago.