Crude Oil Prices Surge, Petrol Costs in Nigeria May Rise

International crude oil prices have risen sharply, reaching $107.63 per barrel on September 10, prompting concerns about increased petrol prices in Nigeria. The surge is attributed to escalating attacks related to the US-Iran conflict and disruptions in oil shipments through the Strait of Hormuz.

The Dangote Petroleum Refinery, a major supplier in Nigeria, has already adjusted its petrol prices several times, with its gantry price at N1,265 per litre as of August 29. The current import-parity price for petrol is approximately N1,310.64 per litre.

The refinery's chief executive, David Bird, warned of potential global fuel shortages due to damage in the Middle East and the need to rebuild inventories. While higher international crude prices could lead to increased costs for imported petrol, the actual impact on local prices will depend on various factors, including procurement costs and pricing decisions by refiners and depot operators.