Prosper Okoye
Dangote Petrochemical Refinery has increased the ex-depot price of petrol to 1,175 naira per litre, reversing a 100-naira reduction announced earlier in the week, as a surge in global crude prices raises refining costs, a refinery official said on Friday.
The refinery had cut the price to 1,075 naira per litre on March 10, a move that prompted increased buying by depot operators, according to a senior official who spoke on condition of anonymity because he was not authorised to comment publicly.
“Yes, it is true,” the official said in a telephone conversation confirming the latest upward review.
Join our WhatsApp ChannelIndustry platform Petroleumprice.ng also reported that the new price disrupted trading activities at several petroleum depots.
According to market sources cited by the platform, depot operators in several distribution hubs temporarily halted transactions after the refinery revised the ex-depot price.
“Depot owners across multiple hubs have temporarily halted transactions following the refinery’s upward review of the ex-depot price,” one market source said.
Loading operations at the refinery were also briefly suspended to allow for stock reconciliation and adjustments to the new pricing framework, a refinery source said.
The latest price adjustment reflects rising global crude prices, which directly affect refining costs.
“Brent crude moved from around $91 per barrel to about $100 per barrel, and that increase feeds directly into the cost of refining,” the source said.
Global oil prices have climbed sharply in recent hours amid escalating tensions in the Middle East involving the United States, Iran and Israel, raising concerns over possible disruptions to global crude supply.
The geopolitical tensions have increased fears of instability around the Strait of Hormuz, a key oil transit route through which roughly 20 percent of global shipments pass each day.
The uncertainty has pushed global oil benchmarks higher, with Brent crude trading above $100 per barrel during the week.
Nigeria’s Bonny Light crude also rose above the $100-per-barrel mark amid the volatility in global energy markets.
Traders say the rally reflects a growing “war premium” in oil prices as markets factor in the risk of supply disruptions in the Middle East.
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At the height of the rally earlier in the week, Nigerian crude briefly climbed to around $120 per barrel before easing to about $100 as markets stabilised.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa
