Petrol Price in Nigeria Remains High Despite Dangote Cut as Global Oil Tensions Rise

Despite a recent price reduction by the Dangote Petroleum Refinery, petrol price in Nigeria has remained stubbornly high, with marketers across Lagos still selling Premium Motor Spirit (PMS) at N1,300 to N1,330 per litre. The refinery had lowered its gantry price from N1,275 to N1,200 per litre, raising hopes among motorists that retail prices would follow suit. However, checks across filling stations showed little relief at the pumps, leaving many Nigerians frustrated.

The impact has been immediate and painful for commuters and transporters alike. Transport fares have surged across Lagos, with passengers now paying as much as N2,600 for trips from Ikorodu to Mile 12—far above the previous N1,500 average. For many households already grappling with inflation, the continued rise in fuel and transportation costs is further stretching daily budgets.

Industry experts say the situation reflects deeper structural issues in Nigeria’s fuel market. While Dangote Refinery continues to attract patronage and expand its capacity, fuel importers are still active following the issuance of import licences to six marketers by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Analysts argue that while local refining could reduce reliance on imports and conserve foreign exchange, profit-driven dynamics and supply gaps continue to influence pump prices.

Meanwhile, global factors are adding pressure. Rising tensions in the Middle East have pushed crude oil prices higher, with Nigeria’s Bonny Light crude climbing to about $110 per barrel. Although Iran recently allowed 10 oil tankers to pass through the critical Strait of Hormuz—suggesting a possible easing of supply concerns—uncertainty remains. Economists warn that fluctuations in crude prices and exchange rates will continue to drive up fuel costs, affecting businesses and households across Nigeria.

Adding a moral voice to the global crisis, Pope Leo XIV has condemned the ongoing conflict, stating that “God does not listen to the prayer of those who wage war.” The pontiff called for peace and dialogue, highlighting the humanitarian toll of the conflict, which has displaced over a million people. As geopolitical tensions persist, their ripple effects are being felt far beyond the battlefield—right down to fuel stations and commuter fares in Nigeria.

source: Vanguard