The Dangote Petrochemical Refinery has increased the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,175 per litre, reversing a price reduction that was earlier announced in the week.
The refinery had previously lowered the ex-depot price to N1,075 per litre on March 10, 2026, a move that sparked heightened buying activity among petroleum depot operators and marketers who rushed to secure products at the reduced rate. However, the adjustment was short-lived as the refinery later reviewed the price upward in response to changing market conditions.
The latest price revision has created a ripple effect across the downstream petroleum sector, with several depot operators reportedly suspending transactions temporarily as they awaited clarity on the new pricing framework. The development caused disruptions in trading activities in multiple petroleum distribution hubs, as marketers reassessed their positions following the unexpected change in price.
Industry insiders indicated that the upward adjustment was largely influenced by the recent surge in global crude oil prices, which has significantly increased the cost of refining petroleum products. As crude oil prices rise in the international market, refining expenses also climb, forcing refineries to review their pricing structures in order to maintain operational sustainability.
The increase in global oil prices has been linked to growing geopolitical tensions in the Middle East involving major global powers and regional actors. The escalating situation has raised concerns about potential disruptions to global crude oil supply, especially around key oil transportation routes that play a crucial role in the movement of petroleum products across international markets.
One of the areas drawing significant attention from global energy traders is the Strait of Hormuz, a strategic maritime corridor through which a substantial portion of the world’s crude oil shipments pass daily. Any threat to the stability of this route has the potential to disrupt global supply chains, leading to heightened volatility in oil markets.
As tensions intensified in the region, global crude benchmarks climbed sharply, pushing prices above the $100 per barrel mark during the week. The rise in international crude oil prices has had a direct impact on refining costs across the world, including in Nigeria, where domestic fuel pricing is increasingly tied to global market dynamics following the deregulation of the downstream sector.
Nigeria’s flagship crude grade, Bonny Light, also experienced a significant price surge amid the volatility in global energy markets. The crude grade crossed the psychological $100 per barrel threshold during the rally, reflecting the broader upward trend in global oil prices.
Energy market analysts say the surge in crude oil prices reflects what traders often describe as a “war premium,” where geopolitical tensions or conflicts increase the perceived risk of supply disruptions, thereby driving prices higher in anticipation of possible shortages.
At the peak of the rally earlier in the week, Nigerian crude prices climbed significantly before moderating slightly as the market began to stabilise. Despite the temporary easing, prices have remained elevated compared to previous levels, continuing to exert pressure on refining and fuel distribution costs.
Within Nigeria’s downstream petroleum market, the price adjustment by the Dangote Petrochemical Refinery is expected to influence depot and retail fuel prices across the country. As one of the largest refining facilities in Africa, pricing decisions from the refinery often shape market trends and affect supply dynamics within the sector.
The upward review of the ex-depot price may also impact the cost of petrol at filling stations if marketers pass the additional cost to consumers. Industry observers note that fluctuations in global crude prices are likely to continue influencing domestic fuel prices as the market responds to developments in international energy markets.
Stakeholders within the petroleum industry continue to monitor the situation closely, particularly as geopolitical developments abroad and shifts in global oil supply continue to shape the outlook for fuel pricing and availability in Nigeria.
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