Dangote Refinery Increases Petrol Price to N1,175
The Dangote Petroleum Refinery has raised the price of Premium Motor Spirit (PMS) to ₦1,175 per litre. This marks the third increase in petrol prices within just seven days.
The latest revision, communicated to marketers and depot operators on Monday, raises the ex-depot price from ₦995 per litre, announced on Friday, by ₦180, representing an 18.1 per cent surge in just three days.
Additionally, the refinery has adjusted the price of Automotive Gas Oil (diesel) to ₦1,620 per litre. This latest increase follows prior adjustments that lifted gantry prices from ₦774 to ₦995 per litre last week.
Nigerian oil players are adjusting to the global energy crisis triggered by the US. The Iran conflict, which entered its second week, saw Brent trading above $105 per barrel on Monday.
The latest price spike indicates that the market is rapidly transitioning from pricing in a logistics disruption to factoring in a potential supply shock. Initially, traders reacted to maritime risks in the Strait of Hormuz, raising shipping costs and delaying cargoes.
However, recent developments suggest that actual production and export volumes across key Gulf producers are now at risk, fundamentally tightening global supply expectations.
“The pace at which oil prices moved from below $100 to above $115 highlights how thin the market’s spare capacity buffer has become.
“Even relatively small disruptions to Gulf production can trigger outsized price movements because the region accounts for a disproportionate share of globally traded crude”, Globaldata said in a commentary note.
“The current surge in prices also reflects the concentration risk within the global oil system. A large share of exports from Saudi Arabia, Iraq, Kuwait, and the UAE passes through the Strait of Hormuz, leaving global energy supply exposed to geopolitical disruptions in a single maritime corridor.
Financial markets have already begun pricing in the broader macroeconomic consequences of the oil shock, including rising inflation expectations, currency volatility, and pressure on equity markets across energy-importing economies. Oando Gains 19% as Investors Shift Attention to Energy Stock
