Nigerian petroleum marketers and retailers have indicated that the pump price of Premium Motor Spirit (PMS) will rise from Tuesday and Wednesday, March 3 and 4, following a fresh increase in the ex-depot price by the Dangote Petroleum Refinery. The development signals another round of upward adjustments in the downstream sector amid renewed volatility in global crude oil markets. The $20 billion refinery raised its gantry price from N774 to N874 per litre, marking a N100 increase. Industry sources attributed the decision to surging international crude oil prices and rising replacement costs, as tensions in the Middle East intensified and pushed oil benchmarks higher.
The latest adjustment followed a spike in crude prices, with Brent climbing to $78.50 per barrel and West Texas Intermediate reaching $71.84. The rally was linked to escalating hostilities involving Iran, the United States and Israel, which have heightened fears of supply disruptions across key oil-producing regions.
Tensions worsened after Israeli strikes reportedly targeted senior Iranian figures, prompting retaliatory attacks by Iran on US allies in the Middle East. Oil installations in Saudi Arabia and Qatar were hit, leading to shutdowns and production suspensions that rattled global energy markets.
Particularly affected was the Saudi Aramco facility in Ras Tanura, one of the kingdom’s largest refining hubs, which was forced to shut down following a drone strike. Disruptions were also reported at QatarEnergy facilities, compounding concerns over liquefied natural gas supplies to Europe and Asia.
Shipping operations in the strategic Strait of Hormuz were suspended, further amplifying fears of constrained crude flows. Analysts warn that any prolonged disruption in the Gulf corridor could significantly tighten global supply and inflate shipping and insurance costs.
Against this backdrop, retail petrol prices in Nigeria, which hovered between N870 and N899 per litre in Abuja and surrounding areas on Monday night, are now expected to approach N980 to N1,000 per litre. Marketers say transportation and logistics costs will ultimately determine final pump prices across various regions.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria and the president of the Petroleum Products Retail Outlets Owners Association of Nigeria both linked the anticipated hike to rising crude oil prices triggered by the Middle East conflict. They noted that local refineries are compelled to adjust prices in line with global market realities.
The refinery had earlier suspended petrol loading operations and the issuance of proforma invoices from midnight on March 2, effectively pausing fresh PMS transactions. However, diesel loading continued without disruption, underscoring the targeted nature of the suspension.
Market checks indicate that the revised gantry price has already taken effect, with private depot owners reportedly halting sales in response to the crude surge. Energy analysts caution that if oil prices advance toward $90 per barrel, Nigeria could face further increases in petrol and diesel prices despite its expanding domestic refining capacity.
