Petrol Prices Rise to N1,430 as $100 Oil Pushes Up Nigeria’s Fuel Costs

Petrol prices have climbed as high as N1,430 per litre at some filling stations in Nigeria as the surge in international crude oil prices feeds through to the domestic downstream petroleum market.

The latest increase follows a fresh adjustment in the wholesale price of Premium Motor Spirit by Dangote Petroleum Refinery, which raised its gantry price to N1,350 per litre from N1,265, effective September 12, 2026. The N85 adjustment represents an increase of about 6.7%.

Retail stations have subsequently started repricing their inventories. Checks in Abuja showed NIPCO selling petrol at N1,430 per litre, while Mobil increased its price to N1,400 and MRS moved to N1,395.

The increases show how the global oil shock is now moving beyond Nigeria’s crude export earnings and directly into the cost of energy for households and businesses.

The N1,350 wholesale price is the latest in a series of adjustments by Dangote Refinery as crude prices have risen sharply.

The refinery’s gantry price stood at N1,165 per litre on August 21 before moving to N1,185, N1,200, N1,265 and subsequently N1,350.

That represents an increase of N185 per litre, or about 15.9%, in roughly three weeks.

For petrol retailers, what matters increasingly is not only the price paid for existing inventory but how much it will cost to replace that inventory.

A marketer selling previously purchased petrol at a lower price faces a substantially higher bill when returning to the depot for another load. That replacement-cost pressure encourages filling stations to adjust pump prices as wholesale prices rise.

Prices are not uniform nationwide, however. Individual stations continue to sell at different levels depending on suppliers, inventory positions, locations and operating costs.

The underlying pressure is coming from the international energy market.

Brent crude climbed above $107 per barrel on Monday, while West Texas Intermediate traded above $100 as renewed attacks on Saudi Arabian infrastructure and shipping around the Strait of Hormuz deepened concerns about global supply.

The rally means Nigeria is confronting an unusual economic trade-off.

Higher crude prices potentially increase the value of Nigeria’s oil exports, strengthening government oil receipts and foreign-exchange inflows.

But crude is also the principal raw material used by refineries to produce petrol. A Nigerian refinery purchasing crude at market-linked prices therefore faces substantially higher feedstock costs when international oil rises above $100 per barrel.

Domestic refining reduces Nigeria’s dependence on imported finished petroleum products, but it does not completely disconnect domestic fuel prices from movements in the international energy market.

Imported petrol is facing similar pressure.

Importers must account for international product prices alongside freight, insurance, financing and foreign-exchange costs. Shipping expenses have also increased as instability around the Middle East forces some vessels to consider longer or more expensive routes.

This means Nigeria’s two principal sources of petrol supply are facing cost pressure simultaneously. Domestic refiners are paying more for crude, while importers face higher product acquisition and logistics costs.

The economic consequences extend beyond motorists.

Petrol remains an important input for transportation and small businesses, while millions of Nigerian households and enterprises continue to depend on generators to supplement electricity supply.

A sustained increase to N1,400 per litre and above could therefore raise operating costs across several sectors of the economy.

Transport operators may attempt to recover higher fuel expenses through fares, businesses moving goods between cities face additional logistics costs, while companies running petrol-powered equipment either have to absorb higher energy expenditure or pass some of it to consumers.

Food prices are particularly exposed because transportation represents an important part of the cost of moving agricultural products from farms to urban markets.

The latest increase could consequently create another source of inflationary pressure just as policymakers seek to consolidate recent improvements in price stability.

The development also illustrates why crude oil above $100 does not translate into an uncomplicated windfall for Nigeria.

The country can earn more dollars from every barrel exported, provided production and export volumes remain stable. But part of that benefit can be offset domestically through higher petrol, diesel, transportation and production costs.

The extent of the pressure will depend heavily on how long crude prices remain elevated.

A quick easing of Middle East tensions could reduce international crude and petroleum-product prices and eventually relieve pressure on Nigeria’s downstream market.

However, a prolonged period of $100-plus oil would leave refiners and marketers replacing inventories at elevated prices.

With petrol already reaching N1,430 per litre at some filling stations, sustained strength in international crude prices increases the likelihood that higher pump prices will become more widespread across Nigeria.