Petrol Prices Surge Past ₦950/Litre in Nigeria Amid Global Tensions, Naira Slide

Petrol prices across Nigeria climbed steeply on Monday, with pump prices in major cities like Abuja and Lagos now ranging between ₦915 and ₦955 per litre. This increase, led by the Nigerian National Petroleum Company Limited (NNPCL) and other marketers, is a direct reaction to surging global crude oil prices and ongoing pressure on the Nigerian naira. Notable stations such as AA Rano and Conoil in Abuja raised prices by ₦45, while NNPCL retail outlets also adjusted their rates upwards. In Lagos, similar hikes were observed, marking a return to the costliest petrol prices since the beginning of the year.

The Dangote Refinery recently increased its depot prices due to the rising international crude benchmark, prompting NNPCL and other retailers to adjust theirs accordingly. Industry insiders explain this as a typical outcome of Nigeria’s deregulated downstream oil sector, where fuel prices are driven by market forces. Chief Chinedu Ukadike of IPMAN emphasized that crude oil prices, exchange rates, and operational costs are the main variables affecting retail petrol prices in the country.

Geopolitical tensions, particularly the rising conflict between Israel and Iran, have been major contributors to the global oil price surge. Iran’s threats to block the Strait of Hormuz—a vital route for global oil transport—have sparked concerns about a possible oil supply shock. These developments have caused international crude prices to soar, affecting dependent economies like Nigeria, which still relies heavily on refined fuel imports from Europe despite recent local refining efforts.

Experts warn that while Nigeria could benefit from increased oil revenue in the short term, the burden of the rising pump prices falls squarely on consumers and businesses. Analyst Olufemi Idowu noted that local refineries like Dangote’s still pay international crude prices, meaning the retail price hikes are unavoidable. The current trend suggests that prices may exceed ₦1,000 per litre if global tensions continue and the naira fails to recover.

In the international arena, former U.S. President Donald Trump also weighed in, urging for stability in oil prices while tensions rise over the U.S. military strikes on Iran. Trump’s public remarks reflect the high global stakes as Iran threatens further retaliation. For Nigeria, analysts conclude that meaningful relief at the pump would require a stronger naira, more effective domestic refining, and a calming of global oil market tensions. Until then, Nigerians should prepare for ongoing volatility in fuel prices.

Source: The Sun