As tensions between Israel and Iran escalate, Nigeria faces yet another surge in petrol prices, sending ripples through the already strained economy. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has accused petroleum marketers of exploiting the situation to hike pump prices beyond reasonable limits, calling on regulatory agencies to act swiftly.
According to market data from Petroleumprice.ng, petrol prices at major depots rose sharply on Monday. The Dangote Petroleum Refinery increased its ex-depot price from ₦825 to ₦840 per litre. Rainoil followed with a ₦50 hike, now selling at ₦900. Other major suppliers, including Fynefield, Mainland, Sigmund, and Matrix Warri, posted similar price spikes, with some nearing ₦930 per litre — sparking fears that the retail price may soon hit ₦1,000/litre.
Industry watchers blame the rising prices on a combination of global oil price shocks caused by the Middle East crisis and local supply disruptions. Reports indicate that a tanker drivers’ strike along the Lekki-Epe corridor in Lagos over the ₦12,500 E-call up fee further disrupted fuel distribution on Monday.
An anonymous depot operator told The Punch that the loading of petrol was halted due to the fee dispute, adding that, “if this continues, Nigeria may witness another bout of fuel scarcity in the coming days.”
Meanwhile, oil prices for Nigeria’s major export grades — Bonny Light, Qua Iboe, and Brass River — rose to over $78 per barrel on Monday, exceeding the Federal Government’s 2025 budget benchmark of $75. The spike follows Israel’s military operations in Iran, sparking fears of a prolonged regional conflict that could squeeze global oil supply.
While the increase in crude prices may be a revenue relief for the Nigerian government, it poses fresh challenges to the deregulated downstream petroleum sector. Energy analysts warn that higher crude costs translate to increased petrol prices at home — a cost ultimately borne by consumers.
Speaking at a world press conference in Abuja, PENGASSAN President, Festus Osifo, criticized the price surge and called out marketers for what he described as “deliberate exploitation” of Nigerians.
“Even with crude oil trading around $60 to $65 per barrel recently, fuel prices have remained between ₦875 and ₦905,” Osifo noted. “That’s not justifiable. At best, petrol should retail between ₦700 and ₦750 per litre based on international benchmarks and exchange rates.”
He also took a swipe at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to regulate pricing effectively under the deregulated framework. “NMDPRA should not watch as suppliers exploit the citizens under the guise of deregulation. Pricing transparency is essential,” he stressed.
Osifo urged the agency to start publishing a pricing template to prevent arbitrary adjustments by marketers, referencing the international PLAT (Platts) benchmark, which indicates that current crude prices should not result in retail petrol prices above ₦750.
PENGASSAN also decried the persistent shutdowns of Nigeria’s refineries, especially the Port Harcourt Refinery, attributing the failures more to politics than technical issues. Osifo revealed that despite over $2.5 billion spent on refinery rehabilitation, the facilities remain largely unproductive.
“The excuse for the current 30-day shutdown of the Port Harcourt Refinery due to maintenance is becoming a pattern,” he said. “These refineries suffer from management inefficiencies and politically motivated decisions.”
He called on the Nigerian National Petroleum Company Limited (NNPCL) to revisit the operational models of all state-owned refineries and adopt a transparent, sustainable strategy for their revival.
In a broader warning, PENGASSAN noted that insecurity in Nigeria’s oil-producing regions — especially maritime threats in the Niger Delta — continues to drive away multinational oil investors, despite new incentives introduced by the Tinubu-led government to attract capital.
“The insecurity around production sites, especially in the waterways, is alarming,” Osifo said. “We need to address these issues if we want serious investors to return.”
The combination of international conflict, domestic policy failures, and regulatory gaps has created a perfect storm for Nigerians at the pump. While the federal government may benefit temporarily from higher crude export revenues, the economic burden on ordinary citizens continues to mount.
As Nigerians brace for the possible return of fuel queues and ₦1,000/litre petrol, industry stakeholders and the public alike await decisive intervention from regulatory authorities to stabilize the market and safeguard consumer rights.