Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS), commonly known as petrol, by N44 per litre to N1,120 per litre. This adjustment comes as global crude oil prices continue to climb amid escalating geopolitical tensions in the Middle East, according to reports from PetroleumPriceNG.
Price Hike Follows Dollar Sales Policy Shift
The latest increase occurs less than 24 hours after the refinery announced the suspension of naira-denominated fuel sales, directing marketers to pay for petroleum products in US dollars. This development signals fresh pressure on Nigeria's downstream petroleum market, where depot prices have already risen sharply, raising concerns over further increases at filling stations across the country.
Industry data shows that depot prices surged by more than N100 per litre following the refinery's dollar sales policy, creating uncertainty for independent marketers and fueling expectations of higher retail pump prices nationwide.
Global Oil Prices Trigger Fresh Adjustment
The refinery's price review follows a sharp rally in international crude oil prices after renewed instability around the Strait of Hormuz, one of the world's busiest oil shipping routes. Reports indicate that Brent crude climbed toward the $90 per barrel mark on Tuesday, July 14, 2026, after Iran reportedly launched missile strikes on two United Arab Emirates oil tankers passing through the strategic waterway.
The attack heightened fears of disruptions to global crude supplies, prompting traders to factor in a larger geopolitical risk premium. Earlier in the trading session, Brent crude rose above $86 per barrel before extending gains, while the US benchmark West Texas Intermediate (WTI) climbed past $80 per barrel, its highest level in about a month. Since the previous Friday, international oil prices have gained roughly 12%, reflecting growing concerns over the security of energy exports from the Gulf region.
Depot Prices Jump by Over N100
The sharp rise in crude prices has quickly filtered into Nigeria's downstream market. A day after Dangote Refinery switched to dollar-priced petroleum sales, depot operators significantly increased ex-depot prices as marketers rushed to secure supplies and protect themselves against anticipated higher replacement costs.
Industry observers say the adjustments are largely precautionary, with marketers seeking to cushion the impact of any sharp rise in international crude prices should the crisis worsen. The refinery's latest pricing adjustment is widely seen as a direct response to the higher cost of crude oil, which remains the primary feedstock for petrol production.
What the Increase Means for Nigerians
The latest increase is expected to have far-reaching implications for households and businesses already grappling with elevated living costs. Higher petrol prices typically translate into increased transportation fares, more expensive logistics for businesses, and rising costs of goods and services across the economy.
Analysts warn that if international oil prices remain elevated and tensions in the Middle East persist, further adjustments in domestic fuel prices cannot be ruled out. The situation also underscores Nigeria's growing exposure to developments in the global energy market despite the commencement of local refining operations.
For consumers, the latest increase means another squeeze on disposable income, while businesses may be forced to pass higher operating costs on to customers. With global crude markets remaining volatile and depot prices climbing rapidly, industry stakeholders expect fuel prices to remain under pressure in the coming days unless geopolitical tensions ease and international oil prices retreat.
