Iran War: Petrol Hits N937/Litre in Lagos, N975 in Abuja
Residents of Lagos State and the Federal Capital Territory, Abuja, are confronting renewed fuel price pressures as escalating geopolitical tensions in the Middle East, a critical hub for crude oil production, continue to disrupt global energy markets. This disruption has pushed crude oil prices above $80 per barrel, driving domestic petrol costs perilously close to the N1,000 per litre mark, according to recent market observations.
Sudden Price Adjustments Across Major Cities
Motorists, transport operators, and commuters in key urban centers awoke to abrupt price hikes at filling stations. In Lagos, multiple fuel outlets increased Premium Motor Spirit (PMS) prices from approximately N830 to about N937 per litre. In Abuja, outlets operated by NNPC Limited and MRS Oil Nigeria Plc raised pump prices from N875 to around N975 per litre, while some independent marketers were selling fuel at about N960 per litre, as verified by quick checks.
Industry Sources Point to Ex-Depot Price Review
Industry insiders attribute this price surge to a recent upward revision in ex-depot prices by Dangote Petroleum Refinery & Petrochemicals. The refinery reportedly adjusted its gantry price from N774 to approximately N874–N875 per litre. Officials at the refinery confirmed that loading operations were temporarily suspended earlier in the week following spikes in crude oil prices, a move that tightened supply and accelerated downstream price adjustments.
Global Oil Market Rally Fueled by Middle East Tensions
The global oil market rally has been intensified by mounting tensions involving the United States, Iran, and Israel. Market fears are centered on potential disruptions around the Strait of Hormuz, one of the world's most vital oil shipping corridors, responsible for transporting roughly one-fifth of global crude oil supplies. Analysts caution that prolonged instability could propel global oil prices toward $100 per barrel, exacerbating the situation.
Impact on Nigeria's Deregulated Petroleum Framework
Nigeria, operating under a deregulated petroleum pricing framework but remaining heavily exposed to global crude benchmarks, has felt the impact swiftly across transportation and consumer goods prices. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) described the situation as alarming, warning that sustained geopolitical conflict could trigger wider economic instability. The association explained that higher crude prices naturally translate to higher domestic fuel costs under cost-reflective pricing systems.
Calls for Economic Protection Measures
PETROAN's National President, Billy Gillis-Harry, urged the government to strengthen domestic refining capacity as a protective economic buffer. The group also recommended consistent crude supply to local refineries, continued implementation of the Naira-for-Crude policy to reduce foreign exchange pressure, and accelerated rehabilitation of Nigeria's state-owned refineries to shield the economy from external shocks. These measures aim to mitigate the adverse effects of global market volatility on Nigerian consumers and businesses.
