Crude Oil Price Surge Sparks Fresh Petrol Price Hike Fears in Nigeria
Nigeria's petrol market is facing fresh pressure as international crude oil prices surge past $100 per barrel. Brent crude rose to $107.63 on Thursday, September 10, while West Texas Intermediate climbed above $100, according to Reuters.
The Strait of Hormuz disruptions have raised fears of tighter global oil supplies and higher transportation costs. This has led to a sharp rally in crude prices, which could increase the cost of imported petrol and put pressure on refiners' pricing decisions.
The Dangote refinery, a major supplier of petrol to the Nigerian market, has already adjusted its petrol prices several times in recent weeks. Its chief executive, David Bird, warned that global fuel shortages could persist beyond the current Iran conflict, citing damage to Middle Eastern refining infrastructure and the need to rebuild inventories.
Motorists may see higher fuel prices depending on exchange rates, import parity, distribution costs, and refiners' pricing decisions. Petrol landing cost has risen to ₦1,311 per litre, prompting depot owners across major Lagos loading hubs to withhold sales.