Fuel Prices Rise Across Nigeria as Global Oil Shock Hits Pump Prices Again

Fuel prices are rising again across Nigeria as higher global crude oil prices and continued disruption in international energy markets feed into domestic petrol and diesel costs.

Petrol is now selling for around N1,400 per litre in Lagos and Abuja, while some filling stations in northern Nigeria are charging as much as N1,500 per litre, according to Reuters checks. Diesel prices have also climbed above N2,000 per litre.

The latest increase follows a rise in international crude prices amid tensions in the Middle East and disruption around the Strait of Hormuz, a major route for global oil shipments.

The development has also been reflected in the pricing of locally refined petrol. Dangote Petroleum Refinery, which has a processing capacity of 700,000 barrels per day, has raised its wholesale petrol price to about N1,350 per litre.

The refinery’s operations at full capacity have helped reduce Nigeria’s dependence on imported petrol, but the latest price increase highlights the continued exposure of domestic fuel prices to international crude costs.

The impact is extending beyond motorists. Higher petrol and diesel prices increase transportation and logistics costs for businesses, while manufacturers and other operators that rely on diesel for power generation face additional expenses.

The renewed increase also comes as Nigeria’s headline inflation eased slightly to 15.39 per cent in August, from 15.43 per cent in July. However, Reuters reported that analysts and labour leaders are concerned that sustained fuel-price increases could put renewed pressure on inflation and household purchasing power.

Global oil prices have shown some volatility this week. Brent crude fell below $100 per barrel on Tuesday after reports that Iran could reopen the Strait of Hormuz within seven days if the United States takes steps to ease military pressure.

For Nigerian consumers and businesses, however, the key issue is whether the international oil market will remain elevated for long enough to trigger further increases in domestic fuel prices — or whether easing crude prices and improved supply through the Strait of Hormuz will eventually provide relief.