The Dangote Refinery, the world’s biggest single-train refinery, is preparing for higher fuel prices after an increase in gantry costs.
Nigerians have been warned to prepare for another rise in the price of Premium Motor Spirit (petrol), with the exact cost varying depending on the region.
According to The Punch Newspaper, the anticipated increase comes as the Dangote Refinery plans to expand into electricity generation, steel production, and port facilities, aligning with its broader goal of industrializing Africa and strengthening domestic energy security.
The immediate driver of the fuel price hike, however, is the recent surge in global crude oil prices triggered by the escalating conflict in the Middle East.
As of Monday, crude was trading at $78 per barrel, down slightly from $82 on Sunday after the fighting intensified.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, told reporters that “following the Dangote adjustment, pump prices are expected to range from N980 to over N1,000 per litre, depending on location and logistics. This reflects the recent jump in global crude prices.”
A senior refinery official added, “The gantry price has been raised to N874 per litre from N774. This revision was necessary due to changes in global crude fundamentals and replacement costs.”
The ongoing U.S.-Israeli-Iranian conflict is rattling global oil markets, with crude prices already incorporating concerns over potential supply disruptions.
Both Brent crude and the U.S. benchmark West Texas Intermediate have climbed sharply in recent sessions, as traders account for heightened geopolitical risks.
Even before any major interruption to supply, analysts note that markets have added a “risk premium” an extra cost included in prices to account for the possibility of shipment disruptions from the region.
Some projections indicate that if supply interruptions continue or worsen, oil prices could hit or exceed $100 per barrel.
At the heart of these concerns is the Strait of Hormuz, a narrow but strategically vital waterway that carries nearly 20% of the world’s daily oil supply.
This corridor is the main export route for key Gulf producers including Saudi Arabia, the UAE, Kuwait, Iraq, and Iran. Any threat to tanker traffic through this chokepoint immediately affects global energy prices.