Pump prices of Premium Motor Spirit (PMS) are climbing toward ₦1,400 per litre across several parts of Nigeria following a fresh upward review of depot prices by the Dangote Petroleum Refinery.
Market checks on Wednesday showed retail stations in Lagos and neighbouring Ogun adjusting prices from around ₦1,250 to between ₦1,315 and ₦1,350 per litre, with higher figures reported in locations farther from the refinery. In some border communities, residents said prices were edging close to ₦1,700 due to supply constraints.
The latest movement followed the refinery’s decision to raise its petrol loading price to about ₦1,275 per litre, up from roughly ₦1,200. Coastal supply prices also rose, reflecting tightening market conditions linked to international crude benchmarks.
Oil traders attribute the pressure to developments in the Middle East, where tensions between the United States and Iran have disrupted shipping around the Strait of Hormuz. The uncertainty has lifted global oil prices, with Brent crude surging well above $100 per barrel this week.
At the same time, the Nigerian National Petroleum Company Limited increased official selling prices for Nigerian crude grades for May cargoes. Industry reports indicate notable hikes for Bonny Light and Forcados streams, adding to cost pressures for refiners that price crude against international references.
Sources familiar with refinery operations said administrative adjustments earlier in the week briefly slowed product scheduling for marketers, compounding supply tightness in some depots.
Retail outlet owners say the volatility is complicating business planning. The leadership of the Petroleum Products Retail Outlet Owners Association of Nigeria warned that prices could climb further if geopolitical tensions persist.
The group urged authorities to consider measures that cushion transport and food costs for consumers benefiting from higher crude revenues.
Refiners’ representatives also renewed calls for a domestic crude pricing model that reflects local realities rather than full reliance on Brent benchmarks. They argue that discounting external cost elements in local transactions would lower feedstock costs and stabilise pump prices.
Economists have suggested that the Federal Government could explore structured crude supply arrangements to domestic plants in exchange for price stability on refined products. However, no formal policy response has been announced.
Industry insiders previously indicated that recent depot prices were below prevailing import parity levels when crude spiked, suggesting earlier pricing may have absorbed part of the shock. With crude still elevated, that buffer appears to have narrowed.
Meanwhile, reports from maritime trackers show congestion of Iranian tankers near export terminals as the US maintains pressure in the Gulf, reinforcing market concerns about sustained supply disruption.
Energy analysts say unless shipping through the Gulf normalises and crude prices retreat, Nigerian motorists should expect continued upward pressure on petrol prices in the near term.
