US-Iran war: Marketers, Dangote trade words over petrol price

Tensions in the Middle East involving the United States, Iran and Israel have triggered a sharp debate between petroleum marketers and the Dangote Petroleum Refinery over the rising price of petrol in Nigeria. Marketers claim that imported petrol is currently cheaper than the product supplied locally by the Dangote refinery, arguing that a litre of imported Premium Motor Spirit (PMS) is about ₦64 lower than Dangote’s price. The claim has intensified concerns among consumers already struggling with the rising cost of fuel across the country.

The controversy followed the refinery’s decision to increase its ex-depot (gantry) price of petrol from about ₦774 to roughly ₦874 per litre after global crude oil prices climbed sharply amid the ongoing Middle East conflict. Following the increase, many filling stations across Nigeria adjusted their pump prices, with petrol selling between ₦935 and ₦960 per litre in some locations including Lagos and Abuja. Analysts say the surge in crude oil prices—now above $84 per barrel—has raised the cost of refining and transporting petroleum products globally.

In response to the marketers’ claims, the Dangote refinery dismissed the comparison, challenging importers to bring petroleum products into the country despite the disruptions caused by the war in the Middle East. The refinery said the conflict has led to refinery shutdowns and reduced fuel supply worldwide, increasing global prices. It added that local refining remains crucial to protecting Nigeria from severe supply shocks and promised to continue prioritising fuel supply to the domestic market despite the rising cost of crude oil.

Experts warn that if the conflict continues and crude oil prices keep rising, petrol prices in Nigeria could climb even higher, possibly crossing ₦1,000 per litre. Economists also caution that higher fuel prices may increase transport fares and the cost of goods, further worsening inflation and the cost-of-living challenges faced by many Nigerians.