The Dangote Refinery on Tuesday reduced its petrol gantry price by N100, from N1,175 to N1,075 per litre.

The move followed a slump in global oil prices, with Brent crude dropping to $89 per barrel from over $100 on Monday.

Officials of the refinery confirmed the development to our correspondent, adding that diesel prices have also been reduced.

They stated that petrol supplied via coastal distribution channels will now sell for N1,050 per litre, reflecting a slight differential for marine logistics.

Similarly, diesel is now N1,430 per litre at the gantry, representing a N190 reduction from the earlier price of N1,620 per litre.

According to oilprice.com, Brent crude prices witnessed a dramatic reversal on Tuesday, plunging nearly 27 per cent from the previous day’s high of $119 per barrel to as low as $87 per barrel.

The Dangote Refinery reportedly blamed global crude volatility for the repeated price hikes, citing tensions arising from the US-Iran conflict.

By David Torough, Abuja

The Dangote Petroleum Refinery has increased the gantry price of Premium Motor Spirit (PMS), popularly known as petrol, to ₦1,175 per litre, marking the third upward adjustment in fuel prices within one week and raising fresh concerns over a possible sharp escalation in pump prices nationwide.

The latest revision, communicated to marketers and depot operators on Monday, represents an increase of ₦180 from the ₦995 per litre ex-depot price announced on Friday, translating to an 18.

Industry sources said the refinery also reviewed the gantry price of Automotive Gas Oil (AGO), commonly known as diesel, upward to ₦1,620 per litre.

The development follows earlier price adjustments that saw the refinery raise petrol prices from ₦774 to ₦995 per litre last week, amid growing volatility in the global oil market.

Crude oil prices have also climbed sharply, hitting $104.4 per barrel from $92.69 recorded a day earlier, largely driven by escalating geopolitical tensions in the Middle East.

Reacting to the development, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that the price of petrol could rise to nearly ₦2,000 per litre, while diesel may approach ₦3,000 per litre if the ongoing conflict in the Middle East persists.

The National President of PETROAN, Billy Gillis-Harry, gave the warning on Monday in Port Harcourt while delivering a keynote address titled “Deconstructing Energy Trilemma” at an event organised by the Department of Petroleum Economics and Policy Studies, Ignatius Ajuru University of Education.

He cautioned that sustained increases in petroleum product prices could worsen inflation, trigger job losses, and deepen economic hardship for Nigerians, while significantly increasing transportation costs and the prices of goods and services across the country.

According to him, petrol sold at about ₦774 per litre before the current Middle East crisis but now sells for above ₦1,000 per litre, representing an increase of about 30 per cent.

Similarly, diesel, which previously sold at around ₦950 per litre, has risen to about ₦1,400 per litre and above, reflecting an increase of nearly 49 per cent.

Gillis-Harry attributed the surge in global oil prices to the ongoing conflict involving Israel, the United States, and Iran, noting that sustained drone and missile attacks are threatening key oil routes and infrastructure, thereby creating uncertainty in global energy supply chains.

“With no clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply in the coming days,” he warned.

He urged the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently strengthen the country’s domestic refining capacity to shield Nigeria from global market shocks.

Specifically, he appealed to the Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, to facilitate the immediate resumption of operations at Nigeria’s government-owned refineries, particularly the Port Harcourt Refinery’s Area 5 plant and the Warri Refinery, which had earlier operated briefly before shutting down again for profitability assessments.

According to him, rehabilitating Nigeria’s refineries for domestic production would reduce the country’s exposure to international market volatility and enhance national energy security.

Despite the challenges, Gillis-Harry expressed optimism that ongoing economic reforms by the administration of President Bola Tinubu would eventually bring relief to Nigerians and stimulate long-term economic growth.

By David Torough, Abuja

Fuel prices across Nigeria have surged close to the N1,000 per litre mark, triggering concern among motorists and businesses, as regulators attribute the development to market forces while energy experts warn that global tensions could push prices even higher.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said fluctuations in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, were the result of supply and demand dynamics under the country’s fully deregulated downstream petroleum sector.

Speaking in Abuja, the authority’s spokesperson, George Ene-Ita, said variations in fuel prices across retail outlets were not due to regulatory interference but reflected prevailing market conditions.

According to him, Nigeria has been operating a fully deregulated petroleum products market since the inception of the current administration, allowing market forces to determine pricing.

“Pump price vagaries are purely as a result of market dynamics,” Ene-Ita said, adding that deregulation was designed to encourage competition, efficiency and increased investment in the downstream oil and gas sector.

Across several cities, petrol prices have risen sharply in recent days. While the product previously sold between about N875 and N880 per litre in some locations, independent marketers now sell it for between N960 and N1,000 per litre or more. Stations operated by the Nigerian National Petroleum Company Limited (NNPC Ltd.) have also adjusted prices to around N960 per litre in many outlets.

In Lagos, checks showed prices ranging between about N1,005 and N1,040 per litre at different filling stations, with motorists scrambling to secure supplies amid fears of further increases.

Energy experts say the rising prices are largely driven by developments in the global oil market, particularly the recent surge in crude oil prices linked to geopolitical tensions in the Middle East.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the cost of crude oil remains the most critical factor influencing petrol prices.

He explained that global crude prices had jumped from about 65 dollars per barrel to nearly 92 dollars within a short period, raising the cost of refined petroleum products worldwide.

Yusuf noted that even domestic refineries were affected because crude oil used for refining was typically priced at international market benchmarks.

He added that although the Dangote Refinery is located in Nigeria, a significant portion of the crude it processes is sourced externally, making it vulnerable to global price volatility.

“About 70 per cent or more of the crude used by the refinery is sourced externally,” he said.

Despite the rising prices, Yusuf said the refinery had improved Nigeria’s energy security by stabilising supply and reducing the likelihood of the fuel shortages and long queues that once plagued the country.

“If we did not have the Dangote Refinery, the situation would likely have been much worse. Petrol could be selling for about N1,500 per litre or more,” he said.

Similarly, energy policy expert Prof. Ken Ife said Africa’s heavy dependence on imported petroleum products continued to expose the continent to global price shocks.

He said Nigeria currently had about 445,000 barrels of crude allocated for domestic refining but stressed that local refineries still required more consistent crude supply to operate at optimal capacity.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, also warned that escalating tensions around the strategic Strait of Hormuz were pushing global petroleum prices upward.

He explained that the maritime corridor accounts for nearly 30 per cent of global crude shipments and that persistent attacks and hostilities in the region pose significant risks to global energy supply chains.

According to him, before the crisis escalated petrol sold at about N774 per litre, but prices have since climbed to between N950 and N970 per litre, while diesel has risen sharply from about N950 to nearly N1,400 per litre.

He warned that if geopolitical tensions persist, petrol prices could approach N1,500 per litre while diesel may exceed N2,000 per litre, with severe implications for transportation, manufacturing and inflation.

Economic analyst Dr Chijioke Ekechukwu urged the Federal Government to mitigate the impact by supplying crude oil to local refineries at subsidised rates.

He said such a policy would allow refineries to produce and sell petroleum products locally at relatively stable prices while the country continues exporting crude oil at international market rates.

Ekechukwu also called for stricter enforcement of domestic crude supply obligations and tighter border controls to curb the smuggling of refined petroleum products to neighbouring countries.

According to him, strengthening local refining and safeguarding domestic supply will help shield Nigerian consumers from sudden price shocks in the global energy market.

Experts agree that until global oil prices stabilise and geopolitical tensions ease, Nigerians may have to contend with continued volatility in fuel prices.