Petrol Prices Rise in Nigeria as Brent Crude Crosses $95
- Brent crude oil surged above $95 per barrel after US strikes on Iranian targets near the Strait of Hormuz rattled global oil markets
- Dangote Refinery raised its petrol gantry price three times in nine days, bringing the cumulative increase to N100 per litre
- NNPCL is now selling petrol at N1,299 per litre in Lagos and up to N1,345 per litre in parts of Abuja as wholesale costs climb
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerian motorists are bracing for further increases at the pump after Brent crude oil crossed $95 per barrel, driven by military escalations around the Strait of Hormuz, one of the world's busiest oil transit routes.
The international benchmark surged roughly 5% in a single trading session after the United States struck Iranian targets near the strategic waterway.
Washington said the action came in response to Iran's alleged attempts to mine the strait and a separate attack on a US military base.
Source: UGC
Iran subsequently reported retaliatory strikes on US positions, while tankers operating near Oman were also hit by unidentified projectiles.
The strait handles roughly 17 million barrels of crude oil daily, and any sustained disruption to traffic through the corridor carries significant implications for global energy prices.
Dangote Refinery Raises Gantry Price Three Times
The spike in global crude prices has fed directly into Nigeria's wholesale petrol market.
Dangote Petroleum Refinery increased its Premium Motor Spirit gantry price to N1,265 per litre on August 29, the third upward adjustment in nine days.
The refinery first moved its price from N1,165 to N1,185 per litre on August 20, then to N1,200 per litre on August 25, before the latest N65 increase brought the total rise to N100 within the period.
Independent petroleum marketers have followed suit, with depots in Lagos, Calabar, Port Harcourt and Warri quoting wholesale prices between N1,290 and N1,400 per litre. Retail pump prices in Kaduna have reportedly climbed beyond N1,330 per litre.
NNPCL Outlet Prices Climb Across Key Cities
The Nigerian National Petroleum Company Limited has adjusted prices at its retail stations nationwide.
Checks by Petroleumprice.ng showed NNPCL selling petrol at N1,299 per litre in Ikeja, Lagos. Drivers in parts of Abuja are now paying as much as N1,345 per litre at NNPCL outlets.
Source: Getty Images
Analysts caution that prices could rise further if Brent crude remains elevated.
Although Dangote Refinery, which has a 650,000-barrel-per-day capacity, has expanded domestic petrol output considerably, the refinery noted that imported fuel still accounted for more than 40% of Nigeria's petrol supply in July.
A prolonged conflict around the Strait of Hormuz could push up the landed cost of imported petrol and place additional pressure on both wholesale and retail prices across the country.
Dangote begins free petrol delivery
Earlier, Legit.ng reported that the Dangote Petroleum Refinery has introduced a free petrol delivery programme for fuel marketers across six Nigerian states, pricing the product at N1,075 per litre under the first phase of the initiative.
A notice issued by the refinery outlined the scheme, which forms part of the company's broader Vision 2030 strategy to strengthen fuel supply logistics and improve access to petroleum products nationwide.
The announcement comes days after the refinery opened the sale of petrol to all licensed marketers.
Source: Legit.ng
