Barely three days after an upward review of petrol pump prices, Nigerians may soon contend with another increase as international crude oil prices continue their upward trajectory.
Nigeria’s Bonny Light crude climbed to $70.30 per barrel, up from $64 per barrel recorded last week, marking an increase of about 10 per cent and the highest price level so far this year.
Benchmark Brent crude also strengthened, rising to $70.15 per barrel from $66, while Murban crude gained, moving up to $68.01 per barrel from $65.20.
Earlier in the week, petrol stations across the country raised pump prices to an average of N850 per litre, an increase of about 14.3 per cent from N750 per litre sold on Monday. Marketers attributed the increase to rising crude oil prices in the global market.
Both the Dangote Refinery and oil marketers defended the price adjustment, explaining that crude oil remains the primary determinant of production and supply costs.
However, available data showed a disparity between the increase in crude prices and local retail prices. While crude oil prices rose by 6.2 per cent, petrol prices increased by 14.3 per cent, suggesting that domestic price adjustments exceeded the rise in input costs.
At the Dangote Refinery, the gantry price of petrol increased by 14.3 per cent, rising from N699 per litre to N799 per litre following the surge in crude prices.
Subsequently, petrol retail outlets in Abuja, Lagos, and other parts of the country adjusted their pump prices upward. NNPC Retail outlets raised prices from N815 per litre to N835, while other marketers implemented steeper hikes. AYM Shafa, for example, increased its price from N815 per litre to N900.
Commenting on the development, National Public Relations Officer of the Independent Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, attributed the price increase to the rise in crude oil prices.
He said: “Crude oil price has increased. The refiners have also increased their price. Once your buying source increases, you will increase. Dangote has increased by over N110.”
Addressing concerns over price increases despite existing stock, Ukadike explained: “When did the crude oil price go up? It is not the first day that it went up. So, that is the nature of the business. Even if we sell our old stock, we can’t buy a new one at the old price. The margin is high. The buying rate and margin is high.
“The marketers have to find a way to see how they can be able to continue to be in business.”
Meanwhile, findings indicated a mixed market response. While petrol pump prices largely remained unchanged, diesel prices rose at several depots.
At Emadeb, diesel sold for N930 per litre, up from N910 the previous day. Ibeto increased its price to N950 per litre from N907, while Integrated also adjusted prices upward from N910 to N950 per litre.
The ongoing rise in crude oil prices has been linked to a sharp decline in United States crude inventories, which fell by 2.3 million barrels in the week ending January 24, 2026.
According to the U.S. Energy Information Administration (EIA), the decline reduced commercial crude stockpiles to 423.8 million barrels, about three per cent below the five-year seasonal average.
The market was also unsettled by growing fears that a possible U.S. military strike on Iran, OPEC’s fourth-largest producer, could disrupt as much as 3.2 million barrels per day of global oil supply.
Tensions escalated after U.S. President Donald Trump warned: “A massive armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose.”
He added: “It is a larger fleet, headed by the great aircraft carrier Abraham Lincoln, than that sent to Venezuela. Like with Venezuela, it is ready, willing, and able to rapidly fulfil its mission, with speed and violence, if necessary.”
Speculation later emerged that the warships had already arrived in the Middle East and were redeployed from the Asia-Pacific region amid heightened tensions between Washington and Tehran.
(VANGUARD)
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