The Nigerian National Petroleum Company Limited (NNPCL) has raised the official selling prices of its crude oil grades for May-loading cargoes by as much as $7 per barrel. Concurrently, petrol pump prices have increased across major cities, including Lagos and Abuja.
Global Market Pressures Drive Price Adjustments
This adjustment follows heightened geopolitical tensions between the United States and Iran, which have pushed international oil benchmarks to new highs. The price rally is largely driven by fears of supply disruptions in the Middle East, particularly around the Strait of Hormuz, a critical global shipping route for crude exports.
Analysts note that prolonged diplomatic tensions between Washington and Tehran have tightened market expectations, pushing oil prices upward. Bonny Light crude, Nigeria's flagship grade, rose by approximately $6.13 per barrel compared to April levels, while Forcados crude increased by about $7.01 per barrel. Bonny Light is currently trading around $124.86 per barrel, commanding a premium of nearly $14 above Brent Crude, which has surged beyond $110 per barrel.
Impact on Petrol Prices
Nigerians are already feeling the impact through higher fuel costs. A market survey conducted on April 30, 2026, showed that NNPCL filling stations in Lagos raised petrol prices to ₦1,320 per litre from ₦1,245. In Abuja, pump prices climbed to ₦1,364 per litre from ₦1,295, an increase of ₦69 per litre. The new prices have taken effect across several NNPCL stations in the Federal Capital Territory, including Gwarimpa, Kubwa Expressway, Wuse Zone 6, and Zone 4.
An attendant at one of the Abuja outlets confirmed the adjustment, stating that the pump price was changed to ₦1,364 per litre from ₦1,295 that morning. Other filling stations, including MRS, BOVAS, and independent marketers, have also adjusted their pump prices upward, with petrol now selling between ₦1,365 and ₦1,370 per litre in Abuja.
Dangote Refinery Contributes to Price Pressures
The latest hike follows a recent increase in ex-depot prices by the Dangote Refinery, which raised its petrol loading cost by ₦75 per litre to ₦1,275 from ₦1,200. The refinery attributed the increase to rising global crude prices, which recently crossed $115 per barrel.
Economic Implications
Energy experts say the surge in crude prices could temporarily improve Nigeria's foreign exchange earnings and government revenue, given the country's heavy dependence on oil exports. Additional market uncertainty has emerged from reports that the United Arab Emirates may be considering an exit from the Organisation of the Petroleum Exporting Countries (OPEC), a development that has triggered fresh speculation over future global supply patterns.
Data from the Central Bank of Nigeria showed Bonny Light trading close to $74 per barrel before the recent escalation in late February, highlighting the sharp increase recorded within weeks.
Economists warn that while higher crude prices may strengthen public finances, the resulting increase in fuel prices could worsen inflation, raise transport fares, and further strain household incomes across the country. They have called for targeted government interventions to cushion the impact on vulnerable Nigerians as energy costs continue to rise.
Broader Market Reactions
Legit.ng earlier reported that petrol prices across Nigerian depots have climbed sharply, crossing the ₦1,300 per litre mark in several locations. The fresh increase comes amid growing concerns over the escalating United States-Iran conflict, which has pushed Brent crude prices to $117 per barrel, alongside the unexpected withdrawal of the United Arab Emirates from OPEC, a move that has intensified fears of supply disruptions across global energy markets.
