Dangote Refinery Faces Pressure to Raise Petrol Prices

International crude oil prices have surged to $115.18 per barrel, raising concerns that Dangote Refinery and other petroleum depot operators may increase their selling prices for Premium Motor Spirit (PMS), commonly known as petrol, currently priced at ₦1,350 per litre. The sustained rise in crude prices could compel refiners and importers to adjust their rates as replacement costs escalate.

This development threatens to add pressure on households, transport operators, and businesses already grappling with high energy costs. Brent crude rose 1.8% to $115.18 per barrel, marking its highest level in five months, while the West Texas Intermediate benchmark increased by 2% to $101.56 per barrel.

The price rally is attributed to renewed geopolitical tensions, particularly fears of military strikes involving the United States and Iran, and attacks on energy infrastructure in the Middle East. Reports indicate that Iran-backed Houthi militants have targeted energy facilities in Saudi Arabia, exacerbating market uncertainty.