Global oil prices rebounded sharply on Tuesday, with Brent crude climbing 2.9% to $102.84 per barrel following a volatile week tied to Middle East tensions and U.S. policy statements. This surge has immediate domestic consequences in Nigeria, where the Dangote Petroleum Refinery announced a fresh increase in its ex-depot price for Premium Motor Spirit (PMS), raising it from N1,175 to N1,245 per litre. The refinery attributed the revision to fluctuating global crude prices and elevated shipping costs, factors it described as beyond its control.
The price volatility underscores Nigeria’s vulnerability to external oil market shocks, despite not being a direct party to the conflict. Aliko Dangote, President of the Dangote Group, warned after meeting with President Bola Tinubu that prolonged instability could severely impact African economies burdened by high debt and limited fiscal buffers. “Energy costs are central to nearly all sectors… sustained increases would have widespread and cascading effects on livelihoods and production,” Dangote stated, echoing concerns that the continent faces hardship from a crisis it did not create.
This sentiment was reinforced by Fatih Birol, Executive Director of the International Energy Agency (IEA), who described the current situation as a combined threat of multiple past oil crises. Speaking in Australia, Birol stressed that “no country will be immune” and called for urgent global cooperation to mitigate the economic threat.
In response to the mounting pressure, Billy Gilly-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), proposed a set of measures to cushion the impact on Nigerians. Appearing on Channels Television, Gilly-Harry advocated for a national push to expand Compressed Natural Gas (CNG) filling stations and accelerate electric vehicle (EV) adoption as long-term alternatives to petrol. In the short term, he suggested targeted subsidies for commercial transport operators to offset rising costs. He also emphasized that petroleum marketers were not exploiting the situation and were collaborating with the government to improve product distribution. Gilly-Harry noted that PETROAN is engaged in discussions with the Presidential Committee on CNG to deepen gas penetration nationwide.
The sequence—from global market turmoil to local price adjustments, followed by warnings from major industry figures and proposed policy responses—highlights the interconnected nature of the current energy shock and the search for both immediate palliatives and structural solutions in Nigeria.
