Petrol Prices Face Fresh Pressure as Crude Oil Surges Past $107

Nigeria's petroleum sector is experiencing mounting pressure on prices as global crude oil values have climbed sharply. On Thursday, September 10, Brent crude surged past $107 per barrel, representing an 8% jump within a four-day span.

This rally has prompted swift action from domestic fuel suppliers, pushing the landing cost of petrol in Nigeria to ₦1,311 per litre. Simultaneously, West Texas Intermediate crude exceeded $100, indicating widespread strain across global energy benchmarks.

Geopolitical instability is driving the price movement, specifically tensions between the United States and Iran alongside maritime shipping disruptions through the Strait of Hormuz. Prior to escalations beginning February 28, crude traded below $69 per barrel.

Reflecting this shift, Nigerian petrol prices have climbed dramatically—from approximately ₦830 per litre before the Middle East tensions emerged to somewhere between ₦1,266 and ₦1,310 or higher depending on location throughout the country. Market operators are adopting cautious strategies amid the turbulence.

Dangote Petroleum Refinery has modified its pricing approach. In parallel, depot operators controlling major Lagos distribution points—Coconut, Satellite Town, and Dockyard among them—have halted sales operations.

Their withdrawal reflects apprehension surrounding costs of replenishing inventories, as they resist offloading current supplies at rates susceptible to rapid obsolescence once new deliveries arrive. Retail pump prices have shown relative constancy across most major fuel stations during this window, though sustainability appears questionable.

In Lagos, operators quoted rates around ₦1,266 to ₦1,267 per litre as of the reporting date, whereas facilities in Port Harcourt and Warri enacted modest modifications. Diesel markets have experienced upward movement as well.

The spread separating landing costs from consumer prices is compressing steadily, suggesting forthcoming increases should elevated international crude persist.