The Digest:
Petrol prices have breached the psychological ₦1,000 per litre barrier across most Nigerian states, driven by the escalating Middle East conflict that has pushed Brent crude above $115 per barrel. The Dangote Refinery suspended PMS loading over the weekend of March 7-8 due to logistical challenges and to avoid selling at a loss before prices rise further. The Federal Government, through NNPCL, is securing crude supply for the refinery via third-party international traders to sustain local refining operations. However, Dangote requires 13-14 crude cargoes monthly to operate at full capacity, while NNPCL supplies only about five. The shortfall forces the refinery to buy from foreign traders at inflated prices amid global tensions. Officials warn consumers may not see immediate price drops despite supply interventions. Retail prices in several states now exceed ₦1,100 per litre, with some stations selling at approximately ₦1,200, the third price spike in a week, from ₦774 to ₦995 previously.
Key Points
- Petrol now above ₦1,000 nationwide, hitting ₦1,200 in some areas.
- Dangote suspended loading to avoid selling at a loss.
- NNPCL supplies only 5 of 13-14 monthly crude cargoes needed.
- Shortfall forces buying from foreign traders at conflict-inflated prices.
- Brent crude surges past $115 as Middle East conflict enters 10th day.
With petrol crossing ₦1,000, Dangote struggling for crude, and global oil prices soaring past $115, Nigerian consumers face a perfect storm, as the government scrambles to secure supply without immediate relief in sight.
Sources: NNPCL, Dangote Refinery, Market Reports
