Dangote fuel price hike pushes petrol above N1,000 per litre across Nigeria as Middle East tensions drive global oil prices higher

Nigerians across major cities are grappling with rising petrol costs after the Dangote Petroleum Refinery increased its gantry price of Premium Motor Spirit to N995 per litre, triggering nationwide adjustments that have pushed pump prices to between N1,000 and N1,190 per litre.

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The development has begun to ripple through the economy as transport fares, goods and service costs climb in several parts of the country, further straining household budgets already pressured by inflation.

Market checks show that despite the higher prices, supply remains steady across most states, preventing the panic buying typically associated with sudden fuel price increases.

However, motorists, transport operators and small business owners say the new price regime is placing significant pressure on daily earnings and living costs.

Analysts link the Dangote fuel price hike to escalating geopolitical tensions in the Middle East involving Iran, the United States and Israel.

The conflict, which intensified after joint military strikes on Iranian targets late February, has disrupted global oil supply chains and driven crude prices sharply upward.

A major flashpoint has been the disruption of shipping through the Strait of Hormuz, a narrow maritime corridor between Iran and the Arabian Peninsula that handles nearly 20 per cent of global oil and gas shipments.

Heightened security risks and attacks on vessels in the region have slowed tanker movements and left millions of barrels of crude and refined products stranded in the Gulf.

The supply shock has pushed Brent crude prices above $90 per barrel, raising fears of further increases if the conflict persists.

Because global oil prices serve as the benchmark for petroleum products, the surge has quickly filtered into domestic fuel markets in Nigeria.

In the Federal Capital Territory, commuters are already bracing for higher transport fares as filling stations adjust pump prices above the N1,000 mark.

A survey showed most outlets selling petrol between N1,052 and N1,105 per litre. At MRS Oil Nigeria Plc, a retail partner of the Dangote refinery, petrol sold for N1,060 per litre, while NIPCO Plc along Airport Road dispensed the product at N1,105 per litre.

Commercial driver Daniel Ishyaku, who operates along the Federal Secretariat-Asokoro route, said he had increased fares from N400 to N700 to cope with rising fuel costs.

“Fuel is now more than N1,000 per litre. If I don’t increase the fare, I will run at a loss,” he said.

In Lagos, petrol prices climbed as high as N1,190 per litre in some outlets early Saturday.

At a Mobil station along Agege Motor Road in Mushin, petrol sold at N1,018 per litre, while the NNPC Retail station on Yaya Abatan Road dispensed the product for N1,005 per litre.

Dispatch rider Augustine Akor said the increase had forced him to raise delivery charges.

“I delivered a package from Iju-Ishaga to Ogba today and had to charge N4,800 instead of N4,000 because of the fuel increase,” he explained.

Small businesses are also feeling the pressure. Boutique owner Chukwudi Anioke said the rising fuel cost could push retail prices higher as many shops rely on generators due to unstable electricity supply.

Across other cities, the trend remains similar. In Kaduna, petrol sold between N1,060 and N1,070 per litre, while stations in Jalingo and Wukari in Taraba State sold the product for between N1,000 and N1,060 per litre.

In Benin City, prices ranged from N1,050 to N1,072 per litre, while motorists in Port Harcourt paid between N1,050 and N1,075 per litre.

The highest prices were recorded in Gombe, where petrol sold for as much as N1,250 per litre at some stations. Commercial motorcyclist Ibrahim Musa said the surge had severely reduced his daily earnings.

“We are really suffering. Most of what we make now goes back into buying petrol,” he said.

Residents also fear that the surge could further worsen Nigeria’s cost-of-living crisis. Aisha Mohammed, a resident of Gombe, said the increase was already pushing up food and transport prices.