The Dangote Petroleum Refinery has raised its gantry price of petrol to N1,275 per litre and that of diesel to N1,950 per litre, marking a fresh increase in fuel costs that could trigger higher pump prices across the country.
A top official at the refinery, who confirmed the development to reporters on Tuesday night, said prevailing international crude oil benchmarks and broader market realities drove the price adjustments.
Under the new pricing template, petrol price increased by N75 per litre from N1,200 to N1,275, representing a 5.02 per cent rise, while diesel jumped by N200 per litre from N1,750 to N1,950.
The latest review pushes diesel closer to the N2,000-per-litre mark at filling stations. It is expected to further increase transportation, logistics and production costs for businesses already battling a difficult operating environment.
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Explaining the development, the refinery official linked the increase to volatility in the global oil market, particularly the effect of escalating tensions in the Middle East on crude oil prices.
"The adjustment is in line with global market trends. You are aware of the ongoing tensions in the Middle East and how they have impacted crude oil prices. These are external factors that directly influence refined product pricing," the official said.
He added, "Petrol has been reviewed upward by N75 to N1,275 per litre, which is about a five per cent increase, while diesel has increased more significantly by N200 to N1,950 per litre. These changes reflect the realities of the international market."
Market data from Petroleumprice.ng also corroborated the development, indicating that the new petrol price reflects a 5.02 per cent increase at the gantry level.
The price hike came at a time when many stakeholders had expected that growing local refining capacity, particularly from the Dangote Refinery, would help cushion Nigerians from global oil market shocks and stabilise domestic fuel prices.
However, despite increased local refining output, Nigeria remained exposed to international oil price volatility because pricing in the downstream sector was still largely tied to global crude benchmarks.
Industry observers said the latest increase was likely to be passed on to consumers in the coming days, as marketers adjust pump prices to reflect the higher landing and supply costs.
Global oil prices have remained unstable in recent weeks amid renewed geopolitical tensions in the Middle East, a region that accounts for a significant portion of the world's crude supply. Any disruption, or even fears of disruption, often pushes up crude prices and affects the cost of refined petroleum products worldwide.
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Although Nigeria is a major crude oil producer, it operates a deregulated downstream petroleum market in which fuel prices are largely determined by market forces rather than direct government control.
This means local fuel prices are influenced by a combination of international crude prices, exchange rates, logistics costs and refinery operations.
The Dangote Petroleum Refinery, regarded as Africa's largest, was expected to significantly reduce Nigeria's dependence on imported fuel and help moderate price instability.
But analysts said that as long as crude oil pricing remains linked to the global market, domestic fuel prices will continue to fluctuate in response to international developments.
The latest hike also came amid growing concerns over affordability, with many Nigerians already struggling with rising transport fares, electricity costs and the broader cost of living.
Economists warned that sustained increases in petrol and diesel prices could worsen inflationary pressures, raise the cost of goods and services, and further slow economic recovery.
