The new pricing system has resulted in a major increase in petrol prices from ₦995 per litre and a dramatic rise in diesel prices from ₦1,430 per litre, indicating an ongoing upward trend in domestic fuel prices.
The revision comes as global crude oil prices rise due to rising geopolitical concerns in the Middle East.
As of 1:00 p.m. WAT, Brent crude was trading at $102.8 per barrel, up 10.91 percent, while West Texas Intermediate was at $101.0 per barrel, up 11.08 percent, as seen on Channels.
The temporary suspension of loading ensued as global oil markets responded to increased geopolitical risks in the Gulf area.
At the time of the decision, Brent crude, the global oil benchmark, temporarily climbed to $120 per barrel ($119.50) before easing slightly to $112.98 on Monday, as markets responded to supply concerns linked to the violence.
Much of the fear is focused on the Strait of Hormuz, a small waterway between Iran and Oman through which around one-fifth of the world’s oil exports pass.
Dangote Refinery’s reaction to global oil prices
Earlier this month, the Dangote refinery advised Nigerians to brace for another probable increase in petrol prices, stating that the exact adjustment may vary by region.
“Following the increase by Dangote, the pump price will likely range between N980 and over N1,000 per litre, depending on location and logistics. This is largely the effect of the recent hike in global crude oil prices,” Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, said in a phone interview.
At the time, the global price of crude oil stood at $78 per barrel.
In the same week, pump prices at certain filling stations had already risen to over ₦930 per litre, with forecasts suggesting costs might soar beyond ₦1,000 per litre from earlier levels of about ₦874, which the refinery was still selling at.
A few days later, the refinery increased fuel prices by approximately ₦100, while simultaneously promising to shield Nigerians from the full impact of global oil price shocks caused by geopolitical crises.
“Dangote Petroleum Refinery & Petrochemicals reassures Nigerians of its unwavering commitment to serving as a stabilising force amid recent shocks in the international oil market,” the company said via a statement issued on Thursday.
“The Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the many benefits of domestic refining,” it added.
The refinery, the world’s largest single-train refining facility, is projected to play an important role in stabilizing Nigeria’s gasoline supply, even as global oil price volatility continues to influence domestic fuel costs.
