Residents of Lagos and Abuja are grappling with another surge in fuel prices as escalating geopolitical tensions in the Middle East — a key hub of global crude oil production — continue to rattle international energy markets. Crude prices have climbed above $80 per barrel, pushing petrol costs in Nigeria closer to N1,000 per litre.
Motorists, transport operators and commuters across both cities were met with sudden pump price increases at filling stations. In Lagos, several outlets raised the price of Premium Motor Spirit (PMS) from about N830 to roughly N937 per litre.
In the Federal Capital Territory, stations operated by NNPC Limited and MRS Oil Nigeria Plc adjusted prices from N875 to around N975 per litre. Some independent marketers were selling at approximately N960 per litre, according to market checks.
Industry sources attributed the hike to a recent increase in ex-depot prices by Dangote Petroleum Refinery & Petrochemicals, which reportedly raised its gantry price from N774 to between N874 and N875 per litre. Refinery officials confirmed that loading operations were briefly halted earlier in the week due to rising crude prices, tightening supply and triggering downstream price adjustments.
The rally in global oil prices has been driven by heightened tensions involving the United States, Iran and Israel. Concerns have focused on possible disruptions around the Strait of Hormuz, a critical oil transit route responsible for moving about one-fifth of the world’s crude supply. Analysts caution that sustained instability could push prices toward $100 per barrel.
Although Nigeria operates a deregulated fuel pricing regime, it remains heavily influenced by global crude benchmarks, leaving domestic pump prices vulnerable to international shocks. The ripple effects are already being felt in transportation costs and the prices of goods and services.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) described the situation as concerning, warning that prolonged geopolitical conflict could deepen economic strain. The association noted that under a cost-reflective pricing framework, higher crude oil prices inevitably translate into increased domestic fuel costs.
PETROAN’s National President, Billy Gillis-Harry, called on the government to strengthen local refining capacity as a buffer against external shocks. He also urged consistent crude supply to domestic refineries, sustained implementation of the naira-for-crude policy to ease foreign exchange pressures, and accelerated rehabilitation of state-owned refineries to help stabilise the economy.