The World Bank has warned that the ongoing surge in global oil prices could directly add around 3.1 percentage points to Nigeria’s headline inflation, as rising fuel costs ripple through the economy.
The bank highlighted the widening gap between locally refined petrol and imported fuel as a key factor driving inflationary pressures in the downstream sector.
This was contained in its latest Nigeria Development Update released in Abuja on Tuesday, where it noted that the current pricing structure has created a gap between locally refined fuel and import parity prices.
It also stated that imported petrol is about 12 per cent cheaper than fuel supplied by the Dangote Petroleum Refinery, reflecting distortions in the domestic pricing structure amid soaring global crude prices.
“Dangote refinery—the main supplier of refined petrol after the regulator ceased issuing import licences in early 2026—raised the ex-depot price of Premium Motor Spirit to about N1,275 per litre as of March 23, 2026, compared to an estimated import-parity price of around N1,122 per litre, implying a cost differential of roughly 12 per cent,” the report said.
