The Dangote Petroleum Refinery has raised the gantry price of gasoline and diesel, putting more strain on Nigerian households and companies amid escalating geopolitical tensions in the Middle East and their consequences on international energy markets.
The facility changed its pricing in reaction to current global benchmarks for crude oil and market conditions, according to a senior refinery official who confirmed the development to our correspondent on Tuesday night.
According to the new price structure, diesel increased by N200 per litre to N1,950, while petrol increased by N75 per litre to N1,275, or roughly 5.02 percent.
This indicates that diesel is now on course to surpass the N2,000 per litre level at the pump, further escalating cost pressures throughout the economy. This is a significant increase from last month’s pricing of N1,200 per litre for petrol and N1,750 for diesel.
“The change is consistent with worldwide market patterns. You are aware of how the Middle East’s continuing conflicts have affected the price of crude oil. The individual, who spoke in confidentially because they were not authorised to discuss the subject, said, “These are external factors that directly influence refined product pricing.”
“Diesel has increased more significantly by N200 to N1,950 per litre, while petrol has been reviewed upward by N75 to N1,275 per litre, which is about a five percent increase,” he continued. The realities of the global market are reflected in these adjustments.
Petroleum Price provides market statistics confirmed the development, showing that the most recent petrol price represents a gantry-level increase of 5.02%.
Stakeholders had hoped that more local refining capacity would help stabilise domestic fuel prices at the time of the development. However, economists claim that because Nigeria depends on foreign standards for pricing, it is still vulnerable to fluctuations in the world’s oil prices.
Marketers are anticipated to pass on the extra expense to customers in the upcoming days, and the most recent increase may set off a new wave of pump price increases across the country.
Due to rising tensions in the Middle East, which supplies a sizable portion of the world’s crude oil, global oil markets have remained erratic in recent weeks. Price increases are frequently caused by supply route disruptions or perceived risks, which have an impact on refined petroleum products worldwide.
Nigeria has a restricted downstream industry where fuel prices are mostly set by market forces, even if the country produces oil. This implies that worldwide crude pricing, exchange rates, transport expenses, and refinery operations all have an impact on local prices.
It was anticipated that the largest refinery in Africa, the Dangote Petroleum Refinery, would help stabilise prices and lessen Nigeria’s reliance on imported fuel. However, experts point out that domestic fuel costs will continue to change in response to global events as long as crude oil pricing is linked to global benchmarks.
Concerns about affordability are also raised by the most recent hike, as customers are already struggling with exorbitant energy and transportation expenses. Long-term price increases have the potential to exacerbate inflationary pressures and delay economic recovery.
