- As crude tops $93 per barrel
Rising international crude oil prices have forced a quick price revision in Nigeria’s downstream petroleum market.
Consequently, Dangote Petroleum Refinery raised its Premium Motor Spirit ex-refinery price by N20 per litre, moving its wholesale gantry benchmark from N1,165 to N1,185 per litre.
The local price adjustment coincided with Brent crude futures surging past $93 per barrel to hit a three-week high.
Escalating diplomatic friction between the United States and Iran has driven a five-day rally across global energy markets, sparking fresh anxieties over supply stability in the Middle East.
International benchmark Brent crude gained 1.95 percent to trade at $93.48 per barrel, while West Texas Intermediate crude rose two percent to $86.12 per barrel.
“Trump also warned of tougher economic penalties for entities supporting Iranian economic activities, signalling a further escalation in US efforts to isolate Iran,” wrote ING commodities strategists Warren Patterson and Ewa Manthey in a market note following threats of severe sanctions from Washington.
Market analysts emphasize that current pressure sits squarely on processed fuel supplies rather than crude availability alone.
“Crude is available, diesel is not,” noted Ole Hansen, Head of Commodity Strategy at Saxo Bank. “The real oil market stress is downstream.”
Despite the ₦20 increase, Dangote’s new rate keeps wholesale fuel slightly cheaper than private import terminals across Lagos.
Coastal depots including Integrated Oil and Gas, African Terminals, and NIPCO currently price wholesale petrol at ₦1,200 per litre, while Pinnacle Oil and Gas sells at ₦1,190 per litre.
Higher ex-depot prices will inevitably trickle down to retail filling stations in the coming days.
As crude oil procurement costs climb for local refiners, domestic pump prices remain tied directly to international trade disruptions, guaranteeing ongoing price volatility for motorists and small businesses.