• ‘Nigeria allocates more crude cargoes to Dangote for May’
• Sets new gas price as oil surges, IOCs rake in $100b
• Oil price rises to $117/barrel after attacks on fuel tankers in Middle East

Association of Nigeria Refineries Petroleum Marketers (ANRPM) has urged the Federal Government to consider a temporary subsidy on petroleum products to cushion the impact of rising oil prices triggered by the ongoing conflict in the Middle East.

With a shortage of crude from the international market, the Nigerian National Petroleum Company Limited (NNPCL) is allocating seven crude ​cargoes to Dangote Refinery for the May loading, ​up from the five it received in previous months, ⁠two trade sources told Reuters.

Nigeria has, however, announced a new domestic gas pricing regime as global oil markets surge, with major oil companies across the world benefiting from over $100 billion in windfall profits triggered by geopolitical tensions and supply disruptions.

Reuters also reported yesterday that Brent oil futures were headed for their largest monthly gain in volatile trading. The publication said this came as investors weighed the chances of United States President Donald Trump ending the Iran war against the risk of supply disruptions from a prolonged closure of the Strait of Hormuz.

National President of ANRPM, Henschel Nwozuzu, said the escalating tensions in the Middle East significantly disrupted global energy markets, leading to sharp increases in crude oil prices and, by extension, domestic fuel costs.

The Middle East crisis has affected major oil transit routes such as the Strait of Hormuz, a key global supply corridor, worsening volatility in energy prices.

Nwozuzu noted that Nigeria, despite being a major crude oil producer, remains vulnerable to external shocks due to its pricing structure, which is tied to international market dynamics.

He warned that allowing distant geopolitical conflicts to dictate local fuel prices places undue pressure on citizens already grappling with economic hardship.

The situation, he stressed, presents an opportunity for the government to prioritise domestic needs by supporting local refining, particularly through increased crude supply to facilities such as the Dangote Refinery, to stabilise supply and reduce dependence on imports.

The ANRPM president argued that a temporary subsidy would serve as a buffer for Nigerians as global oil prices continue to surge amid the conflict, with reports indicating significant spikes in fuel costs across several countries.

While advocating policy intervention, he also called for strict standardisation in the operations of modular refineries to prevent substandard petroleum products from entering the market and posing risks to consumers and the environment.

He maintained that a combination of targeted subsidy, local refining support and regulatory oversight would help Nigeria mitigate the impact of global oil shocks and protect the welfare of its citizens.

FUEL prices in Nigeria have reached record highs and Dangote had said it ​could source only about five crude cargoes a month locally, far short of the 13 to 15 it requires, forcing it to import the rest ​at prices dictated by the impact of war in ​the Middle East.

An increase in crude allocations to the 650,000 barrels per ‌day ⁠refinery, Africa’s largest, could also curb volumes of Nigerian crude available for export at a time when the Iran war has drastically cut supply from the Middle East, forcing buyers ​to hunt ​far and wide ⁠for available cargoes.

Dangote ​raised gasoline supplies to Nigeria’s domestic market ​this month, ⁠meeting the needs of a little more than two-thirds of Nigeria’s daily requirements of 60 million litres. It also ⁠had​to increase petrol depot prices by ​about 13 per cent.

ON Monday, Trump said his preference would be to take the oil in Iran amid the conflict between the Islamic Republic, Israel and the United States.

On the same day, an industrial building and a fuel tanker at an oil refinery in the northern city of Haifa, Israel, were hit ‌by debris from an intercepted missile.

According to Reuters, it was not clear ​if the missile was fired from Iran ​or Iran-backed Hezbollah militants in Lebanon, as ⁠both were firing at the same time.

Iran also attacked and set ablaze a fully loaded oil tanker off Dubai yesterday.

With the conflict escalating, Trump urged countries rattled by a fuel disruption over Iran’s de facto blockade of the Strait of Hormuz to go through the sea passage and just take oil.

Amid the ongoing Middle East conflict, the U.S. national average retail price of petrol crossed $4 a gallon ($1 per litre) yesterday, for the first time in more than three years.

THE Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday fixed a new Domestic Base Price (DBP) for natural gas at $2.18 per MMBtu, effective April 1, 2026, in a move to boost supply to the domestic market and stabilise key sectors such as power and industry. Commercial users will pay $2.68 per MMBtu, while gas-based industries will operate within a regulated pricing band.

A report by climate group 350.org estimates that more than $104 billion to $111 billion has been transferred from consumers and businesses to oil and gas companies within a month of the Iran war, showing the uneven impact of fossil fuel dependence.

While Nigeria witnessed an over 65 per cent increase in the cost of petrol, the new natural gas pricing framework is anchored on the Petroleum Industry Act (PIA) 2021 and is designed to balance affordability with the need to incentivise upstream producers to supply the domestic market.

NMDPRA said in a release that the pricing model aligns with international benchmarks and reflects a cost-of-supply approach to ensure sustainability.
The global price surge has reignited calls for windfall taxes on oil companies, as the Chief Executive of 350.org, Anne Jellema, said the crisis highlights how “ordinary people are paying an extraordinary price” while energy firms accumulate significant profits.