Petrol price increase in Nigeria sees pump prices hit N937 per litre as Middle East tensions push global crude higher, prompting calls to boost local refinery output

Petrol prices in Nigeria surged to N937 per litre on Tuesday as escalating tensions in the Middle East disrupted global oil markets, prompting calls from industry stakeholders for increased crude oil supply to the Dangote Petroleum Refinery in naira to stabilise domestic fuel costs.

Also read: Dangote Refinery Signs Major 65m-Litre Petrol Deal

The Dangote refinery recently adjusted its gantry price from N774 to N874 per litre following a jump in oil prices to $84 per barrel.

Fuel stations across Lagos and Ogun states responded by raising pump prices to between N930 and N937, while premium motor spirit had previously sold for between N812 and N839 per litre before the crisis.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) warned that sustained Middle East hostilities, particularly around the Strait of Hormuz, could push crude prices beyond $100 per barrel, intensifying inflationary pressures and affecting domestic fuel and foreign exchange stability.

PETROAN urged the Federal Government to prioritise local refineries, especially the Dangote refinery, through consistent crude supply in naira and the strengthening of the Naira-for-Crude policy.

The association also recommended revamping the four government-owned refineries to reduce reliance on imported petroleum products.

Similarly, the Crude Oil Refineries Association of Nigeria (CORAN) called for an expansion of the Naira-for-Crude policy, providing adequate crude supply to modular refineries such as Aradel Holdings Plc, OPAC Refinery, Walter Smith Refinery, and Edo Refinery and Petrochemicals Company.

CORAN highlighted the critical role of diesel in powering Nigeria’s economy and warned that constrained supply could disrupt operations across multiple sectors.

In Abuja, petrol pump prices also surged, with NNPC and Dangote-affiliated MRS stations increasing rates to between N960 and N975 per litre.

The spike coincides with Brent crude climbing to $85 per barrel, its highest level since June 2024, and West Texas Intermediate crude rising to $75.91 per barrel.

Experts cautioned that if global crude prices remain elevated, domestic petrol could soon surpass the N1,000 per litre mark, particularly in deregulated markets.

Also read: SGR Slashes Petrol Price Amid Fierce Competition

With ongoing geopolitical tensions and no clear resolution in sight, Nigerians are bracing for further economic strain driven by external shocks beyond local control.