Global oil prices rose sharply on Wednesday, climbing by more than five percent after a brief dip earlier in the week, as market volatility continued amid the ongoing Middle East conflict and recent fuel price adjustments by Dangote Petroleum Refinery.
Market data showed that Brent crude rose to $92.43 per barrel as of 10:56 a.m. WAT, marking a 5.27 percent increase.
The global benchmark had fallen to around $88 per barrel on Tuesday after previously surging above $100 per barrel on Monday.
Similarly, the main U.S. crude benchmark, West Texas Intermediate, climbed 5.9 percent to $88.38 per barrel.
The surge in global oil prices followed a decision by Dangote Petroleum Refinery to reduce the gantry price of Premium Motor Spirit (PMS), commonly known as petrol.
According to the company’s Chief Communications Officer, Anthony Chiejina, the refinery reduced the price by ₦100 per litre, bringing it down from ₦1,175 to ₦1,075 per litre.
Petrol supplied through coastal distribution channels will now be sold at ₦1,050 per litre, reflecting differences in logistics and distribution costs.
In a statement, the refinery said the adjustment was intended to reflect developments in the global oil market.
“As responsible corporate citizens operating in a high-governance code and ethical environment, we believe it is imperative to reduce the price of our products as a reflection of the decline in global crude oil prices,” the company said.
The refinery also explained that crude purchased under the naira-for-crude arrangement is still priced based on international benchmark rates and converted to naira using the prevailing exchange rate.
The latest reduction marks the first price cut after three successive increases in recent weeks that had pushed petrol prices significantly higher.
Earlier, the refinery’s Chief Executive Officer, David Bird, noted that the facility remains exposed to fluctuations in global oil prices because its crude supply is benchmarked against international markets.
Oil markets have remained highly unstable since the outbreak of the conflict involving the United States, Iran and Israel, which has disrupted energy supply routes and raised fears of broader regional escalation.
The crisis has pushed global oil prices upward and contributed to increased petrol prices in several countries, including Nigeria.
In response to the potential impact of rising fuel costs on transportation, President Bola Tinubu has ordered the deployment of 100,000 Compressed Natural Gas (CNG) conversion kits across Nigeria.
The Executive Chairman of the Presidential Initiative on Compressed Natural Gas, Ismaeel Ahmed, disclosed this after a meeting with the president at the State House in Abuja.
According to Ahmed, the initiative aims to enable vehicle owners and commercial tricycle operators to convert their engines from petrol to CNG, helping to reduce transportation costs and limit the impact of global oil market shocks.
He added that distribution of the kits is expected to begin within two to three weeks.
