Nigeria’s petroleum market faced renewed uncertainty on Monday after Dangote Petroleum Refinery increased ex-depot prices of petrol and diesel to N1,175 and N1,620 per litre, respectively. The sudden adjustment has raised concerns among fuel marketers and bulk buyers about future price trends, sparking fears of further escalations at the pump. Industry insiders describe the move as the third price review by the refinery in just one week, intensifying caution across the supply chain.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that petrol prices could soar to N2,000 per litre, while diesel may reach N3,000 per litre if ongoing tensions in the Middle East continue. The alert comes amid reports of vessels trapped at the Strait of Hormuz, controlled by Iranian forces, awaiting US naval escorts to safely navigate the strategic shipping route. Analysts say geopolitical risks and rising crude oil costs are key drivers behind the recent domestic fuel price hikes.
Market reactions have been swift, with many filling stations temporarily shutting down and distributors adopting a “wait-and-see” approach. On Kodesho Street in Ikeja, the MRS and Conoil stations were closed, reflecting heightened market caution. Distributors and marketers worry that frequent price revisions could disrupt the supply chain, stoke inflation, and discourage investment in the sector. Online tracking platforms, including Petroleumprice.ng, show Dangote’s latest petrol ex-depot price at N1,175 per litre, with some competitors, like Include Bulk and Masters Energy, offering slightly lower rates at N1,100 per litre.
The price surge mirrors global energy market pressures, including rising crude oil prices and operational costs at refineries. Experts note that the volatility stems not only from local supply adjustments but also from escalating conflicts in the Middle East, where recent Israeli and U.S. strikes on Iranian targets have disrupted tanker movements. The Strait of Hormuz, a vital artery for global oil shipments, has become a focal point of concern, with U.S. interventions including naval escorts and financial safeguards to protect maritime trade.
Energy analysts warn that prolonged instability could further tighten global oil supplies and push domestic fuel prices higher. As marketers brace for additional hikes, the Nigerian public may face mounting inflationary pressure, potentially reshaping consumer behavior and the broader economy in the coming weeks. Observers say that without a resolution to the Middle East crisis, local fuel prices could continue their upward trajectory, signaling challenging times ahead for Nigeria’s downstream petroleum market.
source: The sun