Petrol Price Hits N1,450/Litre as Middle East Crisis Pushes Oil Above $108

Fuel pump price

Petrol Price Hits N1,450/Litre as Middle East Crisis Pushes Oil Above $108

The petrol price in Nigeria has climbed to as high as ₦1,450 per litre in Abuja and about ₦1,400 in parts of Lagos, following a fresh increase in the price of refined petroleum products amid a sharp rise in international crude oil prices.

The latest increase comes after the Dangote Petroleum Refinery raised its petrol gantry price by ₦85, from ₦1,265 to ₦1,350 per litre, effective September 12, 2026.

The adjustment, representing a 6.7 per cent increase, has added fresh pressure to the downstream petroleum market as international crude prices surge amid escalating Middle East tensions and concerns over disruptions to global oil supplies.

The latest Dangote adjustment is the refinery’s fourth increase in about three weeks. Its petrol gantry price has risen by roughly 15.9 per cent since August 21, when the price stood at ₦1,165 per litre.

The impact has already become visible at filling stations, although pump prices vary from one location and marketer to another depending on supply costs, transportation expenses, existing stock and pricing decisions.

In Abuja, some filling stations have raised their prices to ₦1,450 per litre, while others are selling between ₦1,395 and ₦1,400. The increases have also been recorded in Lagos and Ibadan, with several outlets reviewing their prices upwards.

The latest retail movements are coming against a dramatic surge in the international oil market. Brent crude, the global benchmark, has risen above $107 per barrel, with prices reaching about $108.33 amid renewed concerns over global supply.

The oil price rally has been driven by escalating military tensions in the Middle East, attacks on energy infrastructure and growing concerns over the movement of crude through major international shipping routes.

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A drone attack also forced Saudi Arabia to temporarily shut its East-West Pipeline, a key route that allows the country to transport crude to the Red Sea without passing through the Strait of Hormuz. The disruption has heightened concerns about the availability of global oil supplies.

The Strait of Hormuz remains another major source of concern for the global energy market because of its importance to international crude and petroleum-product shipments. Any prolonged disruption to the waterway could further tighten supplies and push oil prices higher.

The current oil shock is already having consequences beyond crude prices. Refiners and fuel suppliers around the world are facing higher replacement costs, while disruptions to shipping and refining infrastructure are increasing the cost of moving petroleum products.

That situation has direct implications for Nigeria despite the country’s growing domestic refining capacity.

The Dangote Refinery, which has become a major supplier of refined petroleum products in Nigeria, has itself adjusted its prices in response to changing international market conditions.

The refinery also increased its coastal price from ₦1,669,543 to ₦1,783,530 per metric tonne, an increase of ₦113,987 or 6.8 per cent.

The latest increase highlights the extent to which global crude prices continue to influence Nigeria’s domestic petroleum market even as local refining expands.

The refinery has also been increasing its crude purchases from Nigeria. It has secured at least 16 million barrels of Nigerian crude for October, equivalent to about 520,000 barrels per day, representing a substantial share of its roughly 700,000-barrel-per-day operating capacity.

The growing availability of locally refined petrol has reduced Nigeria’s dependence on imported finished products, but it does not completely insulate consumers from international oil-price movements. Crude is traded in a global market, while refinery economics, product replacement costs, shipping and other downstream expenses remain sensitive to international conditions.

The latest development is particularly significant because Nigeria’s petrol market is deregulated, meaning retail prices can respond to changes in crude prices, exchange rates, supply costs and competition among marketers.

The current increase could therefore put additional pressure on transport operators, logistics companies, manufacturers and households that depend heavily on petrol.

For consumers, higher pump prices can translate into increased transportation and distribution costs, while businesses that use petrol-powered generators and vehicles may also face higher operating expenses.

The effect could extend to food and other consumer goods if higher fuel and logistics costs are passed through the supply chain.

The renewed pressure comes at a time when the global refining industry is also facing significant disruptions.

David Bird, chief executive of the Dangote Refinery, recently warned that global fuel shortages could continue beyond the current Iran-related conflict because of damage to Middle Eastern refining infrastructure, high refinery utilisation rates and efforts by countries to rebuild depleted fuel inventories.

According to the refinery, the combination of the Middle East conflict and the Russia-Ukraine war has placed additional pressure on global refining capacity and fuel supplies.

Dangote has said it expects to expand its Nigerian refinery capacity further, with plans aimed at increasing its ability to supply refined products to Nigeria and international markets.

For Nigeria, greater domestic refining capacity could strengthen supply security over the long term, but the immediate impact of higher global crude prices is being felt through the cost of petroleum products.

The latest ₦1,450 per litre petrol price in parts of Abuja therefore reflects a combination of domestic pricing adjustments and a rapidly changing international oil market.

There is no uniform national pump price, and motorists in different states and even within the same city may continue to encounter different prices.

However, the movement of petrol towards ₦1,400–₦1,450 per litre at several filling stations signals renewed pressure on Nigerian consumers.

With Brent crude above $108 per barrel, continuing uncertainty around the Strait of Hormuz and other major oil routes, and concerns about global refining capacity, further volatility in petrol prices remains possible.

Unless international oil prices retreat significantly or supply disruptions ease, Nigerian motorists and businesses may continue to face pressure from elevated fuel prices in the coming days.