Rising Crude Oil Prices Push Petrol Costs Higher in Nigeria
The global surge in crude oil prices has led to an inevitable hike in petrol prices, with implications for both businesses and consumers.
The Organisation of Petroleum Exporting Countries (OPEC) projects a 3.1% economic growth for 2025, signaling increased crude demand, higher refining costs, and soaring prices of petroleum products.
Petrol Prices on the Rise
The price of crude oil climbed from $74 to over $80 per barrel within a week, prompting Dangote Petroleum Refinery to adjust its wholesale petrol price from N895 to N950 per litre.
Retail prices now range between N1,050 and N1,150 per litre, depending on location in Lagos and surrounding areas.
OPEC forecasts strong economic growth in 2025, driven by major economies like China and India, two significant buyers of Nigeria’s crude oil. China’s growth rate remains at 4.7%, while India’s is revised upward to 6.5%.
Dangote Refinery Explains Price Adjustments
According to a statement by Dangote Petroleum Refinery, the increased ex-depot price of Premium Motor Spirit (PMS) stems from the rising global crude oil prices.
The company clarified that crude oil is the primary input for petrol production, making its price fluctuations directly impact retail costs.
The statement noted, “We have absorbed approximately 50% of the global cost increases to mitigate the impact on Nigerian consumers. Without this intervention, retail prices would exceed N1,150 per litre in some areas.”
Transparency and Commitment to Nigerians
To maintain transparency, Dangote Refinery plans to publish weekly updates on its ex-depot, ex-vessel, and pump prices.
The refinery also praised the Naira-for-Crude Initiative introduced by President Bola Ahmed Tinubu, which has ensured access to high-quality fuel while shielding Nigerians from severe global price fluctuations.
As crude oil prices continue to rise, the burden on consumers grows, but initiatives like these aim to minimize the impact on the nation.
Stay informed with the latest updates on fuel prices and their impact on the economy.
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