Dangote refinery hikes petrol price as Iran–Israel war pushes oil higher

The Dangote Petrochemical Refinery has increased the ex-depot price of Premium Motor Spirit (petrol) to ₦1,175 per litre, reversing the ₦100 price reduction it announced earlier this week, following a sharp rise in global crude oil prices that has increased refining costs.

A senior refinery official, who spoke on condition of anonymity because he was not authorised to speak publicly, confirmed on Friday that the refinery reviewed the price upward shortly after reducing the ex-depot rate to ₦1,075 per litre on March 10, 2026. The earlier reduction had triggered a surge in buying activity among petroleum depot operators.

When contacted about the development, the official simply confirmed the adjustment, saying, “Yes, it is true.”

Industry checks on the pricing platform Petroleumprice.ng also verified the change, noting that the sudden increase disrupted trading activities at several petroleum depots across the country.

Market sources cited by the platform explained that many depot operators temporarily suspended transactions after the refinery announced the new price, as they waited for clearer guidance on the revised pricing structure.

According to one source familiar with the situation, depot owners in multiple distribution hubs halted sales immediately after the upward review.

Loading activities at the refinery were also briefly paused to allow for stock reconciliation and adjustments in line with the new price framework.

A source within the refinery explained that the decision was largely influenced by the surge in international crude oil prices, which significantly affects the cost of refining petroleum products.

The source said Brent crude had risen from about $91 per barrel to nearly $100 per barrel, increasing operational costs for refiners.

Global oil prices have recently climbed amid growing tensions in the Middle East involving the United States, Iran, and Israel.

The escalating geopolitical situation has sparked fears of possible disruptions to global crude oil supplies, particularly around the strategic Strait of Hormuz, a vital route through which nearly 20 percent of the world’s oil shipments pass each day.

These concerns have pushed global oil benchmarks higher, with Brent crude trading above $100 per barrel during the week.

Nigeria’s key crude grade, Bonny Light, also crossed the $100 per barrel mark amid the volatility in global energy markets.

Energy analysts say the surge reflects a growing “war premium” in the oil market, as traders factor in the possibility of supply disruptions in the Middle East.

At the height of the rally earlier in the week, the price of Nigerian crude briefly climbed to around $120 per barrel before settling close to $100 per barrel as the market stabilised.