Nigeria’s retail petrol market has seen a sharp uptick in pump prices this week as the escalating conflict in the Middle East drives global crude oil benchmarks higher and puts pressure on domestic downstream pricing.
Retail outlets in Lagos have been observed selling Premium Motor Spirit (PMS), commonly called petrol, at about N937 to N935 per litre, marking roughly a N100 jump from typical rates earlier in the week.
In the Federal Capital Territory of Abuja, several stations operated by the Nigerian National Petroleum Company Limited adjusted their pump price to around N960 per litre, while some outlets such as MRS Oil Nigeria Plc pushed prices even higher to N975 per litre, reflecting a rapid transmission of increased supply costs to end users.
The immediate trigger for the domestic price surge traces back to heightened geopolitical tensions following reported joint strikes by the United States and Israel on Iranian targets and subsequent retaliatory activities by Iran in the Gulf.
These developments have raised concerns about disruptions around the strategic Strait of Hormuz, a maritime chokepoint responsible for a significant share of global crude oil exports, prompting Brent crude futures to climb above $80 per barrel and trade near $84 per barrel.
With global supply chains under strain and crude prices elevated, Nigeria’s downstream market, which now broadly reflects international price movements under a deregulated regime, is experiencing pronounced price pass‑through effects.
The direct impact of these global dynamics was evident when Dangote Petroleum Refinery raised its ex‑depot (gantry) price by N100 per litre, shifting the benchmark from around N774 to about N874 per litre.
That adjustment compelled domestic marketers to realign their retail pricing almost immediately, given the linkage between depot costs and pump rates in a market without traditional subsidy buffers.
Supply conditions were further tightened by a temporary suspension of petrol loading operations at the refinery, intensifying upward pressure on landing and replacement costs for marketers.
Industry stakeholders, including the Petroleum Products Retail Outlets Owners Association of Nigeria, have flagged that Nigeria’s reliance on imported refined products and exposure to global crude price volatility make domestic petrol prices particularly susceptible to external shocks.
With inflationary pressures already elevated and transportation costs rising, the recent petrol price increases raise concerns about broader cost‑of‑living impacts.
Analysts warn that continued instability in the Middle East could sustain or deepen crude price rallies and trigger further adjustments at the pump if supply conditions do not stabilise.
Source: The Sun
