Global crude oil prices climbed sharply on Wednesday, rising by more than five percent amid ongoing geopolitical tensions and market reactions to fuel price adjustments in Nigeria.
Market data showed Brent Crude Oil increasing to about $92.43 per barrel, representing a 5.27 per cent rise, while the main United States benchmark, West Texas Intermediate, surged nearly six percent to around $88.38 per barrel.
The rebound followed a brief decline earlier in the week when global crude prices fell to about $88 per barrel after previously exceeding $100 per barrel as tensions escalated in the Middle East.
The price movement came shortly after the Dangote Petroleum Refinery reduced the ex-depot price of petrol.
According to the refinery’s Chief Communications Officer, Anthony Chiejina, the price of Premium Motor Spirit (PMS) at the gantry was cut from N1,175 per litre to N1,075 per litre, representing a N100 reduction.
Petrol supplied through coastal distribution channels was also reduced to N1,050 per litre.
The company said the adjustment reflects prevailing conditions in the global oil market.
It explained that crude supplied to the refinery is priced based on international benchmarks, with an additional premium ranging from $3 to $6, and that foreign exchange used for transactions is sourced at the prevailing market rate without subsidy.
Global oil markets have been particularly volatile as the conflict involving the United States, Iran, and Israel continues to intensify.
The conflict has raised fears about potential disruptions to oil shipments from the Middle East, particularly through strategic maritime routes.
These concerns have contributed to fluctuations in crude prices worldwide and have also pushed petrol prices higher in Nigeria.
In response to the pressure on fuel prices and transportation costs, President Bola Ahmed Tinubu has directed the rapid rollout of alternative energy solutions.
The Executive Chairman of the Presidential Initiative on Compressed Natural Gas, Ismaeel Ahmed, announced that about 100,000 compressed natural gas (CNG) conversion kits will be deployed nationwide.
The initiative is expected to allow vehicle owners and commercial tricycle operators to convert their engines from petrol to CNG, which is cheaper and more stable in supply.
Ahmed said the distribution of the kits is expected to begin within the next two to three weeks as the government accelerates efforts to reduce reliance on petrol.
Earlier, the refinery’s Chief Executive Officer, David Bird, acknowledged that the facility is still exposed to global oil market shocks.
He explained that the refinery purchases crude oil at international benchmark prices, meaning global supply disruptions inevitably affect production costs and fuel pricing.
Despite these pressures, the refinery reiterated its commitment to improving Nigeria’s energy security and ensuring a steady supply of petroleum products.
The latest price reduction marks the first cut after three successive increases that had significantly raised petrol prices in recent weeks.
