RISING geopolitical tensions involving Iran, Israel and the United States have begun to reverberate through Nigeria’s energy market, with the Dangote Petroleum Refinery increasing its Premium Motor Spirit (PMS) gantry price to N875 per litre.
The N101 hike raises the ex-depot price from N774 to N875 per litre, sparking concerns of an imminent rise in pump prices across the country.
A senior official at the refinery confirmed the development to News Point Nigeria on Monday, attributing the upward review to volatility in global crude oil prices and rising replacement costs.
“Yes, the price has been reviewed. The new gantry price is now N875 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official stated.
Independent checks by News Point Nigeria on petroleumprice.ng showed that the revised price had already been updated, signalling a shift in downstream pricing benchmarks.
The price adjustment comes shortly after the refinery suspended petrol loading operations effective midnight on March 2, 2026.
Industry data revealed that PMS loading stopped precisely at midnight, halting product lifting and the issuance of Proforma Invoices, a move widely interpreted as a pause on fresh transactions pending market recalibration.
However, the suspension was limited strictly to petrol. Automotive Gas Oil (AGO), commonly known as diesel, continued to load without interruption.
The refinery’s move triggered ripple effects across the downstream sector, as several private depot owners nationwide also suspended petrol sales during the trading day.
A downstream operator explained the rationale behind the coordinated pause.
“Several depot owners suspended PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” the operator said.
The development is unfolding amid heightened global oil market volatility linked to escalating tensions between the United States and Iran, raising fears of potential supply disruptions in the strategic Strait of Hormuz, a critical artery for global crude shipments.
International crude prices surged past the $80 per barrel mark overnight, fuelling anxieties that prices could climb even higher if hostilities intensify.
Five energy experts who spoke separately to this newspaper warned that Nigeria could experience further hikes in petrol and diesel prices if crude oil breaches the $90 per barrel threshold.
They noted that sustained instability in the Middle East could disrupt supply chains, elevate shipping and insurance costs, and increase import and refining expenses — even as Nigeria expands its domestic refining capacity.
Although Nigeria now boasts significant local refining through the Dangote facility, analysts stress that domestic pricing remains sensitive to international crude benchmarks and foreign exchange pressures.
With the new ex-depot price now at N875 per litre, marketers are expected to adjust pump prices upward in the coming days, potentially intensifying inflationary pressures on transportation, food, and other essential goods.
Market watchers say the coming weeks will be critical in determining whether global tensions ease or escalate, a factor that could ultimately dictate the trajectory of fuel prices in Africa’s largest economy.