Nigeria’s downstream market is on edge as the Dangote Refinery is expected to increase petrol prices today, following a sharp rise in global crude oil prices. The development comes as Brent crude surges closer to $120 per barrel, triggering fresh concerns across the supply chain.
Industry sources reveal that marketers have already begun halting sales in anticipation of the price adjustment, a move aimed at avoiding potential losses. The cautious stance follows earlier signals that the refinery was closely monitoring global market movements before making any pricing decision.
Brent crude had closed around $113 per barrel before gaining an additional 5 percent today, strengthening expectations that a price increase is now imminent. “We are watching the market, and once the movement is sustained, price will most likely move,” a source at the refinery disclosed.
The halt in depot activities, particularly in Lagos, reflects growing uncertainty among traders, many of whom are reluctant to sell at current rates. The anticipated adjustment is expected to ripple across the downstream sector, with Dangote’s pricing likely to set the tone for the broader market.
For consumers, the expected increase could translate to higher transport costs and renewed pressure on household spending, as fuel prices remain a key driver of inflation in the economy.