Global oil prices surged by more than five per cent on Wednesday, reversing a decline recorded a day earlier as markets reacted to developments in the energy sector and ongoing geopolitical tensions in the Middle East.
Data from the international oil market showed that Brent Crude Oil climbed to $92.43 per barrel as of 10:56 a.m. West African Time, representing a 5.27 per cent increase after dropping to about $88 per barrel on Tuesday. Earlier in the week, prices had crossed the $100 per barrel mark as tensions escalated in the region.
The main United States benchmark, West Texas Intermediate (WTI), also rose sharply, gaining 5.9 per cent to trade at $88.38 per barrel.
The rebound came shortly after the Dangote Petroleum Refinery announced a reduction in the price of Premium Motor Spirit (petrol) in Nigeria.
The refinery’s Chief Communications Officer, Anthony Chiejina, confirmed that the ex-gantry price of petrol had been cut from ₦1,175 to ₦1,075 per litre, representing a ₦100 decrease. Petrol distributed through coastal channels will now sell at ₦1,050 per litre.
The refinery explained that the adjustment was in response to changes in global crude oil prices. It noted that crude purchased by the company is priced based on international benchmark rates with an additional premium of between $3 and $6 per barrel.
According to the refinery, foreign exchange used for crude purchases is obtained at the prevailing market rate without subsidy, while crude obtained under the Naira-for-Crude arrangement is still benchmarked to global prices before conversion into naira.
The company reiterated its commitment to strengthening Nigeria’s energy security and ensuring steady supply of petroleum products despite global market volatility.
The price reduction marked the first drop after three consecutive increases in recent weeks. Earlier adjustments had pushed petrol prices from ₦874 per litre on March 2 to ₦995 on March 7 before rising further to ₦1,175 per litre.
The refinery’s Chief Executive Officer, David Bird, had earlier explained that the facility is not immune to global oil market shocks since its crude supply is sourced through international benchmark pricing.
Meanwhile, global oil markets remain sensitive to the ongoing conflict involving the United States, Iran and Israel, which has driven fluctuations in crude prices and affected petrol costs in several countries, including Nigeria.
Amid the rising cost of energy, Bola Ahmed Tinubu has directed the deployment of about 100,000 Compressed Natural Gas conversion kits nationwide to help reduce transportation costs and encourage a shift from petrol to alternative fuel sources.
The Executive Chairman of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), Ismaeel Ahmed, said the programme would enable vehicle and tricycle owners to convert their engines to run on compressed natural gas, with deployment expected to begin within two to three weeks.
