By By Elizabeth Ugbo
Rising global oil prices have triggered fresh fuel hikes across Nigeria, as depot owners, marketers and the Dangote Petroleum Refinery adjusted rates following US–Israel airstrikes on Iran that disrupted crude shipments through the Strait of Hormuz, pushing petrol close to N1,000 per litre, diesel above N1,100 and cooking gas to N950 per kilogram nationwide.
Fuel Price Hike in Nigeria Deepens Economic Pressure
Market checks showed diesel firmed around N1,150 per litre at private depots. This happened even before the official adjustment.
Soon after, retail petrol prices climbed to between N925 and N970 per litre in major cities.
At an MRS station in Abuja, managers implemented new pricing within hours. The ripple effect spread quickly across the downstream market.
The Dangote refinery suspended petrol loading operations at midnight on March 2. Crude prices had surged past $80 per barrel.
By Tuesday morning, the refinery raised its ex-depot price of Premium Motor Spirit to N874 per litre. The previous rate stood at N774.
It also increased Automotive Gas Oil (diesel) by N170, moving from N880 to N1,050 per litre.
Global Conflict Drives Oil Market Volatility
The price spike followed coordinated US–Israel airstrikes on Iran. Iran responded with retaliatory attacks across the Persian Gulf.
As a result, tanker traffic through the Strait of Hormuz slowed sharply. The corridor handles nearly one-fifth of global oil shipments.
Nigeria’s Bonny Light crude climbed to $80 per barrel from $70. Brent crude also rose above $83 in intraday trading.
Major financial institutions warned of further spikes. JPMorgan projected Brent could hit $120 per barrel if the conflict persists.
Bank of America said disruption could add between $40 and $80 per barrel. Goldman Sachs warned that LNG prices in Europe and Asia may surge.
Inflation Risks Return as Fuel Costs Rise
Nigeria had recorded easing inflation before this shock. Annual inflation fell to 15.10 percent in January 2026.
That marked the lowest rate since November 2020. Food inflation dropped to 8.89 percent, while core inflation slowed to 17.72 percent.
However, economists now warn that higher fuel prices could reverse those gains.
“With deregulated pricing, higher crude costs translate into rising petrol and diesel prices,” said Muda Yusuf of the Centre for the Promotion of Private Enterprise.
He added that transportation and manufacturing costs will increase. Consequently, inflationary pressure will intensify.
Transportation and food dominate Nigeria’s consumer basket. Therefore, petrol price hikes quickly affect household expenses.
Businesses and Households Feel the Impact
Manufacturers, hospitals and logistics firms rely heavily on diesel generators. Now, they face renewed cost pressure.
Cooking gas prices also jumped sharply. Nipco Plc now sells LPG at N950 per kilogram.
Navgas Limited moved to N900 per kilogram, while Techno Oil Limited dispenses at N885. The previous average stood near N800.
Marketers expect further increases. Chinedu Ukadike of the Independent Petroleum Marketers Association projected petrol could hit N1,000 in Abuja.
Economist Paul Alaje also warned of higher prices if hostilities continue.
For many Nigerians, the impact remains immediate and personal.
Taiwo Adeyemi, a logistics driver in Lagos, saw petrol rise to N970 from N860 within days.
“I cannot absorb this. Everything I earn goes into the tank,” he said.
Nigeria’s Structural Vulnerability
Energy analysts say Nigeria remains exposed to global shocks. The country depends heavily on imported refined petroleum products.
Global pricing parity mechanisms also tie domestic rates to international crude markets.
“Every time there is a Middle East crisis, we feel it in Lagos,” a retailer on Lagos Island said.
Therefore, a distant geopolitical conflict has become a domestic economic threat.
With petrol nearing N1,000 per litre and diesel above N1,100, households and businesses now brace for another inflation cycle.
