By Francis Ajuonuma
Nigeria’s fuel market is facing renewed pricing pressure, with the Dangote Petroleum Refinery raising the gantry price of Premium Motor Spirit (PMS) to N1,175 per litre.
At the same time, industry marketers warn that petrol could rise to N2,000 per litre if crude oil prices continue climbing toward $120 per barrel.
The refinery notified marketers on Monday that it had increased the gantry price by N180, moving from N995 per litre announced on Friday to N1,175 per litre, representing about 18.1 per cent increase within three days.
The adjustment marks the third upward revision within a week, following an earlier increase from N874 to N995 per litre, which had already pushed pump prices above N1,000 per litre in several parts of the country.
The refinery also revised the price of Automotive Gas Oil (diesel) to N1,620 per litre.
Checks on the petroleum price.ng indicated that the revised figures had already been updated across depot pricing platforms, signalling a shift in the benchmark pricing used by downstream marketers.
However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that petrol and diesel prices could rise sharply if the ongoing geopolitical tensions in the Middle East continue to disrupt global crude oil supply.
PETROAN National President, Billy Gillis-Harry, said the current situation could push petrol close to N2,000 per litre while diesel may approach N3,000 per litre.
“PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists,” Gillis-Harry said.
He explained that the escalating conflict involving Israel, the United States and Iran has heightened uncertainty in international oil markets, threatening key shipping routes and energy infrastructure.
“Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global petroleum supply chains,” he added.
According to him, rising fuel prices could worsen inflationary pressures in Nigeria’s economy and increase production and transportation costs nationwide.
“PMS remains essential for daily mobility, while AGO is vital for manufacturing and industrial operations. Continued price increases will raise the cost of goods and services and deepen economic hardship,” he warned.
Meanwhile, the Managing Director of the Dangote Refinery, David Bird, said the refinery remains committed to ensuring an adequate supply of petrol to the Nigerian market despite turbulence in crude oil markets.
Bird noted that crude prices have surged dramatically within a short period.
“Just a week ago, oil was trading in the mid-$60 range, and it has now climbed to nearly $120 per barrel,” he said.
He explained that while refiners globally are affected by rising crude costs, Nigeria now enjoys some supply security due to domestic refining capacity.
“What would be worse than $120 oil is no oil,” Bird stated, pointing out that some import-dependent countries are already experiencing rationing and panic buying.
According to him, the refinery—operating at 650,000 barrels per day—currently produces between 50 million and 55 million litres of petrol daily, significantly above Nigeria’s estimated daily consumption of 35 million litres.
“With government support and steady access to domestic crude, Dangote Refinery will continue to meet all of Nigeria’s refined fuel requirements,” he assured.
Bird added that the refinery is prioritising domestic supply to guarantee what he described as “fuel abundance” for the country.
“We will ensure that Nigeria enjoys fuel abundance, not fuel scarcity,” he said.
However, he cautioned that petrol pricing would still reflect movements in crude oil markets.
“Pricing is determined largely by commodity markets,” Bird added, noting that decisions on price intervention remain the responsibility of the government.
Industry operators have also called on the Nigerian National Petroleum Company Limited (NNPCL) to accelerate the rehabilitation of state-owned refineries, particularly the Port Harcourt and Warri refineries, to reduce Nigeria’s vulnerability to fluctuations in crude oil prices.
