Global crude oil prices climbed again on the international market, rising by about 9.2 percent, reversing part of the earlier decline that had triggered a reduction in petrol prices in Nigeria.
As of the latest market updates, Brent Crude was trading around $92 per barrel, while the U.S. benchmark West Texas Intermediate hovered close to $88 per barrel.
The rebound follows days of volatility linked to escalating geopolitical tensions in the Middle East. The crisis involving the United States, Iran, and Israel had earlier rattled global energy markets.
Attacks on oil facilities and temporary disruptions to shipping routes through the Strait of Hormuz, a narrow waterway that carries roughly 20 percent of the world’s crude oil supply raised fears of supply shortages and pushed prices above $100 earlier in the week.
Market sentiment later improved after Donald Trump suggested the conflict could end soon, easing concerns about prolonged disruptions to global oil supply.
European governments also explored the possibility of releasing emergency oil reserves to stabilize the market.
Dangote Refinery Recently Cut Petrol Prices
Amid the earlier drop in global crude prices, the Dangote Petroleum Refinery recently reduced the price of petrol by ₦100 per litre, lowering the gantry price from ₦1,175 to ₦1,075 per litre.
Dangote Group’s Chief Communications Officer, Anthony Chiejina, said during a phone interview that petrol at the gantry will now sell for ₦1,075 per litre, while fuel distributed through coastal supply channels will cost ₦1,050 per litre.
In a statement, the refinery explained the rationale behind the decision:
“As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices.”
The company also clarified how its crude supply is priced.
“All our crudes are priced on the global benchmark price plus a $3 to $6 additional premium. Our forex is paid at the prevailing market rate of the day, with no subsidy in both crude and forex.
“For the avoidance of doubt, the crude supplied under the Naira-for-Crude arrangement is priced according to the global benchmark price plus a premium which is then converted to naira using the prevailing market exchange rate.”
The refinery reiterated that it remains committed to supporting Nigeria’s energy security and adjusting prices in line with global market realities.
This reduction represents the first price cut after three consecutive increases that had pushed petrol prices significantly higher in recent weeks.
Earlier, the refinery’s Chief Executive Officer, David Bird, noted that the facility is still exposed to global oil market volatility because its crude supply is linked to international pricing benchmarks.
Fuel Prices At Filling Stations
Despite the reduction at the refinery level, most filling stations across Nigeria have been slow to adjust their pump prices.
In Abuja, some major retail outlets slightly lowered their prices. Stations operated by NNPC Retail Limited reportedly reduced their pump price from ₦1,265 to about ₦1,161 per litre. Other marketers such as AA Rano Nigeria Limited and AYM Shafa Limited also adjusted prices downward to about ₦1,230 per litre, compared to roughly ₦1,330 earlier in the week.
However, many independent marketers have retained their previous prices, selling petrol between ₦1,300 and ₦1,355 per litre.
In Lagos, filling stations were still selling petrol between ₦1,170 and ₦1,250 per litre, depending on the location and brand.
What It Means For Nigeria
The current situation highlights how deeply Nigeria’s fuel prices are tied to global oil market dynamics, even with the presence of a large domestic refinery.
Limited Immediate Relief For Consumers
Although the refinery has reduced its price, the effect has not yet been fully reflected at filling stations. Marketers still have older, more expensive stock, which means consumers may not experience immediate relief at the pump.
Continued Exposure To Global Oil Shocks
Nigeria remains vulnerable to geopolitical tensions in major oil-producing regions. Disruptions in the Middle East, particularly around the Strait of Hormuz, can quickly affect global supply and push up fuel prices locally.
Pressure On Inflation And Transportation Costs
Higher fuel prices typically translate into increased transport fares and higher logistics costs. This could worsen inflation in Nigeria, as transport is a key component in the pricing of food and essential goods.
Growing Importance of Domestic Refining
The price adjustment by the Dangote refinery demonstrates the growing influence of domestic refining capacity in Nigeria’s fuel market. Analysts say increased local refining could gradually reduce reliance on imports and help stabilize prices over time.
In response to the volatility in global oil markets, Bola Ahmed Tinubu has directed the rollout of about 100,000 Compressed Natural Gas (CNG) conversion kits nationwide to reduce the burden of rising fuel costs on Nigerians.
According to Ismaeel Ahmed, Executive Chairman of the Presidential Initiative on Compressed Natural Gas, the President ordered an accelerated expansion of CNG infrastructure across the country.
The programme includes the development of about 77 CNG refuelling stations and the establishment of assembly lines for gas-powered vehicles, which could create jobs and strengthen Nigeria’s automotive sector.
The initiative is also working with the Rural Electrification Agency to deploy solar-powered charging stations that will support electric mobility, especially in areas without reliable electricity.
Analysts say these measures signal a broader attempt by the government to reduce Nigeria’s long-term dependence on petrol and diversify its energy sources.
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