Oil prices at the international market yesterday skyrocketed-to more than $119 a barrel reaching levels not seen since mid-2022. According to the British Broadcasting Corporation (BBC) the price of international benchmark Brent crude rose by more than 25% to trade at $119.50 a barrel at one point before falling back to around $107.
The United States West Texas Intermediate (WTI) crude also rose and traded at about $104 a barrel. Reuters reported that some major producers cut supplies and fears of prolonged shipping disruption gripped the market due to the expanding US-Israeli war with Iran.
In a related development, the Dangote Petroleum Refinery has again adjusted upward the gantry price of fuel by N180 to N1,175 per litre which is an 18.1 per cent increase in three days and the third increase within a week even as it assured that despite the crisis in the Middle East it will be able supply products to Nigerians.
Last week Monday, the refinery increased the gantry price by N101, from N774 before the crisis in the Middle East to N875 per litre and on last Friday night increased it to N995 per litre, an increase of N120 litre.
It also yesterday increased the gantry price of diesel technically called Automotive Gas Oil, (AGO) to N1,620 per litre. Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that diesel could rise to N3,000 per litre and fuel to N2,000 per litre if the conflict in the Middle East persists.
It recalled that before the crisis, fuel sold at N774 per litre but now sells above N1,000 per litre, representing an increase of about 30%. It added that diesel, previously sold at N950 per litre, has risen to N1,400 per litre and above, an increase of about 49%. This was contained in a statement by National PRO, PETROAN, Dr. Joseph Obele. PETROAN renewed its call on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to urgently strengthen domestic refining capacity as a strategic step to shield Nigeria from global petroleum market shocks.
It reiterated its call on the Group Chief Executive Officer, Engr. Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries, particularly the Area 5 Plant at Port Harcourt Refinery and the Warri Refinery, both of which, it said, previously operated briefly before shutdown for profit index evaluation.
Obele also quoted the National President of PETROAN, Billy GillisHarry, as also saying the ongoing conflict involving Israel, the United States, and Iran is pushing global petroleum prices to alarming levels. Sustained drone and missile attacks now threaten critical oil routes and infrastructure, creating uncertainty in global supply chains. Gillis-Harry, noted that with no clear end to the conflict, petroleum product prices in both international and domestic markets are expected to rise sharply in the coming days.
Meanwhile, Dangote Petroleum Refinery & Petrochemicals has indicated its commitment to stabilising energy supply to Nigeria amid recent shocks in the international oil market. The ongoing conflict in the Middle East has led to the shutdown of some refineries and cuts in refinery production across the world, resulting in a global scarcity of petroleum products. In addition, China has banned the export of gasoline and diesel.
