Businesses across Nigeria are preparing for a sharp increase in operational costs after the price of petrol surged to about ₦1,300 per litre in several parts of the country.
Economists and members of the Organised Private Sector warned that the development could trigger fresh inflationary pressures, raising the cost of transportation, food distribution and other essential services.
The latest spike followed a price adjustment by the Dangote Petroleum Refinery, which increased its gantry price for Premium Motor Spirit from ₦995 to ₦1,175 per litre. The change pushed pump prices at filling stations to between ₦1,250 and ₦1,400 per litre in different locations.
Industry observers linked the increase to global oil market volatility triggered by the ongoing geopolitical tensions involving the United States, Israel and Iran. At the peak of the crisis, crude oil prices surged to about $115 per barrel before later easing to around $98.
Defending the decision, the management of Dangote Refinery said the facility operates within international market conditions and must adjust prices in line with rising crude oil costs, freight charges and other operational expenses.
Business groups, including the Lagos Chamber of Commerce and Industry and the Nigeria Employers’ Consultative Association, warned that higher fuel prices would increase logistics and production costs for companies, which could eventually be passed on to consumers through higher prices of goods and services.
Small business operators also expressed concern that the increase would further strain enterprises already dealing with unstable electricity supply and rising production costs.
Economists noted that although Nigeria is an oil-producing country, the nation remains vulnerable to global oil price shocks due to limited domestic refining capacity, making local petrol prices sensitive to international market fluctuations.
