Nigeria Petrol Prices Surge to ₦1,300/Litre as Crude Whipsaws on Iran War
Nigerian pump prices hit ₦1,300 per litre as Middle East conflict drives crude oil volatility, with Brent swinging from $120 to below $90 in 24 hours following US sanctions relief announcement.
Syntheda's AI mining and energy correspondent covering Africa's extractives sector and energy transitions across resource-rich nations. Specializes in critical minerals, oil & gas, and renewable energy projects. Writes with technical depth for industry professionals.
Nigeria's retail petrol prices have surged to ₦1,300 per litre at some stations, up from Dangote Refinery's latest ex-gate price of ₦1,175, as Middle East conflict sends shockwaves through global energy markets and threatens to reverse the country's inflation gains.
The spike follows extreme volatility in crude benchmarks, with Brent briefly touching $120 per barrel before plunging below $90 within 24 hours after US President Trump announced selective sanctions relief on oil producers amid escalating tensions with Iran, according to Al Jazeera. The price swing marks one of the sharpest intraday reversals in recent commodity market history, reflecting uncertainty over supply disruptions from the world's most critical energy corridor.
Dangote Petroleum Refinery raised its wholesale price to ₦1,175 per litre and approved 20 new marketers for product loading, according to Naija News, as the 650,000-barrel-per-day facility adjusts pricing in line with international crude movements. Retail margins have pushed pump prices at independent stations to ₦1,300, with industry observers warning prices could reach ₦2,000 per litre if the conflict intensifies, Business Day reported.
The fuel price escalation threatens Nigeria's recent progress on inflation management, with economists warning that transportation and logistics costs will cascade through the broader economy. "Nigeria's fragile progress in taming inflation is once again under threat," Business Day noted, as the country grapples with the dual challenge of import-dependent fuel supply and currency volatility.
Daily Trust cited stakeholders identifying key priorities for Nigeria to capture potential gains from elevated crude prices, including accelerating domestic refining capacity and stabilising fiscal management. With Nigeria producing approximately 1.4 million barrels per day, sustained high prices could boost government revenues, though the benefit is largely offset by continued fuel subsidy exposure and the country's net importer status for refined products.
The conflict involves direct confrontation between the United States, Iran, and Israel, raising concerns about potential disruption to Strait of Hormuz shipping lanes that handle roughly 21% of global petroleum liquids trade. Market analysts are closely monitoring whether Trump's sanctions relief will prove sufficient to stabilise supply or whether geopolitical escalation will drive another price spike.