A fresh dispute has emerged in Nigeria’s downstream oil sector as petroleum marketers and the Dangote Petroleum Refinery trade accusations over the rising price of petrol amid global tensions involving the United States and Iran.
Oil marketers recently claimed that imported petrol is currently cheaper than the product supplied by the Dangote refinery, alleging that the price difference could affect competition in the local fuel market. According to industry data cited by marketers, the cost of imported petrol was reportedly lower by about ₦64 per litre compared with locally refined products.
However, the Dangote refinery swiftly dismissed the claim, challenging fuel importers to bring petroleum products into Nigeria despite the ongoing instability in global oil markets caused by military tensions in the Middle East. The refinery insisted that the current pricing reflects the realities of the international crude oil market.
The disagreement comes shortly after the refinery increased its gantry price for Premium Motor Spirit (PMS) from about ₦774 to ₦874 per litre, a move attributed to rising global crude oil prices, which recently climbed to about $84 per barrel following the escalation of geopolitical tensions.
Following the adjustment, several filling stations across the country reportedly raised pump prices, with petrol selling for as high as ₦937 per litre in some locations. The development has intensified concerns among consumers already grappling with high energy costs.
Energy analysts say the conflict in the Middle East has disrupted global oil supply chains and triggered volatility in crude prices, with ripple effects being felt across fuel markets worldwide. For Nigeria, the situation highlights the continued sensitivity of domestic petrol prices to global energy shocks, even as the country pushes to rely more on local refining capacity.
Industry observers note that the dispute between marketers and the Dangote refinery reflects the broader transition taking place in Nigeria’s fuel market as competition grows between domestic production and imported petroleum products.
As tensions in the global oil market continue, Nigerians may have to brace for further fluctuations in petrol prices in the coming weeks.
