Marketers Predict Further Price Increases as Petrol Nears N1,000/Litre After Dangote’s Adjustment

• Filling stations nationwide are adapting to the change in crude oil prices and the recent petrol price increases by the Dangote Refinery
• Currently, petrol sells for almost N1,000 per litre, with oil marketers asking Nigerians to brace for further price hikes
• The development came as crude oil prices surged in the international oil markets due to the escalating Middle East crisis

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Filling stations nationwide have adjusted the pump price of petrol, with the product selling for almost N1,000 per litre.

This was exacerbated by the recent price hikes announced by the mega Dangote Refinery on Friday, June 20, 2025.

Crude oil price rises

Also, the recent crude oil price rally in the international oil market, caused by geopolitical tension in the Middle East, added to the skyrocketing prices.

Oil marketers have advised Nigerians to brace up for further increases unless the Middle East tension eases.

According to reports, oil infrastructure has suffered massive damage since the conflict began, triggering a sharp rise in global oil prices.

Crude benchmarks, such as Brent, rose by 11.71% to $74.23 from $66.45 two weeks ago.

Additionally, WTI rose 14% to its highest since January 21 at $77.62 and later climbed 13% last week.

More predictions for crude oil increase

As of Sunday, June 22, 2025, crude prices rose above $77 per barrel, as marketers feared further increases following the US bombing of Iran’s nuclear sites.

JP Morgan said it expects oil prices will average $60 per barrel in 2026, but said it may hit $120-$130 per barrel if the Middle East tension escalates further, namely the closure of the Strait of Hormuz, from where one-fifth of global oil is transported.

Experts warn of further hikes

Experts have said that while high crude oil prices mean a rise in Nigeria’s FX earnings, consumers will feel the heat as PMS and other petroleum product prices will rise astronomically.

Daily Trust quoted Muda Yusuf, the chief executive officer for Centre for the Promotion of Private Enterprises (CPPE), as saying that while the surge in crude oil price would impact FX earnings, global economies would witness a surge in prices of  petrol, diesel and other petroleum products.

This would have far-reaching implications for many economies and businesses,” Yusuf said.

Petrol price tied to global oil market - Expert

Reacting to projections that petrol prices may cross ₦1,000 per litre, energy economist Kaseem Abidemi Obakhume told Legit.ng that the economic realities behind refining and crude supply cannot be overlooked.

“Dangote is not a charity organization. If I'm correct, I think it spent about $20 billion to build the Refinery. There is no body that will venture into a business for charity's sake, he needs to recoup his investment,” he said.

Obakhume also addressed a common public misconception that local refining should automatically translate into significantly cheaper petrol prices. He noted that simply producing crude oil within Nigeria does not eliminate the global cost factors attached to refining and distribution.

He explained that key elements influencing the price of petrol include the raw materials and the production process.

“The major cost drivers are, the inputs, the raw material (crude oil), the production,” he said.

Obakhume who stressed that crude oil remains expensive globally, also linked petrol prices directly to fluctuations in the global crude oil market:

“If the price of crude oil drops today, the price of PMS, or every other white crude oil will definitely drop.”

Dangote Refinery increases petrol prices

A prior report by Legit.ng noted that Dangote Refinery adjusted its petrol prices to N880 per litre from N825, representing an N55 price increase.

The development has sent shockwaves into the downstream petroleum sector, with marketers also adjusting their prices nationwide.

Dangote partner stations such as MRS, AP, Heyden, and others increased their retail prices from N885 per litre to N925.

Findings showed that some filling stations still displayed the previous prices despite the increase by Dangote.

Depot prices surge nationwide

Legit.ng earlier reported that as of Saturday, June 21, 2025, fuel depot prices across Nigeria have surged, with petrol and diesel recording significant hikes in many locations.

A five-day review showed increased tension in the international crude oil market and rising transport costs.

The five-day review covers major petroleum product hubs across the Dangote Refinery and several other depots nationwide.

Editorial assistant Ololade Olatimehin provided exclusive commentary from an energy economist for this report.

Source: Legit.ng