• US president seeks 20% levy on Hormuz cargo Source: Dangote begins dollar pricing for petrol, sets PMS ex-depot price at $0.779/litre
Emmanuel Addeh in Abuja
Nigeria’s benchmark crude, Brent, climbed above $80 a barrel yesterday after US President, Donald Trump, announced the reinstatement of a naval blockade on Iran and proposed a 20 per cent charge on cargo transiting the Strait of Hormuz.
The move heightened fears of prolonged disruptions to global oil supplies amid renewed military clashes between Washington and Tehran and raising concerns over tighter global crude supplies, higher energy costs and renewed inflationary pressures.
Global oil prices surged by more than 9 per cent after the announcement, as Trump said the charges in the Strait of Hormuz would cover the cost of securing the vital shipping lane.
Specifically, Brent rose 9.5 per cent as of last night to $83.23 per barrel, while American oil, the West Texas Intermediate (WTI) jumped as much as 9.3 per cent to $78.11 per barrel.
Trump’s move came as fighting between the United States and Iran intensified, with both sides exchanging fresh missile and drone strikes across the Gulf, raising fears of prolonged disruptions to one of the world’s most important energy corridors and sending crude prices sharply higher.
Trump said the United States would ensure that the Strait of Hormuz remained open ‘with or without Iran’, despite Tehran’s declaration that it had closed the strategic waterway following what it described as an unauthorised transit.
He added that Washington would immediately begin collecting a 20 per cent reimbursement on cargo passing through the strait, arguing that allied nations benefiting from safe navigation should bear the cost of maintaining security.
Speaking earlier on Fox News, Trump said the United States would become the “guardian” of the Strait of Hormuz, insisting that countries relying on the route for oil and gas supplies should compensate Washington for safeguarding maritime traffic.
But Iran rejected the proposal, with the Revolutionary Guards warning that the only way to restore normal shipping through the strait was for the United States to end its military operations in the waterway. Tehran cautioned that continued US intervention could trigger greater disruption to global oil and gas markets.
The renewed confrontation has already begun affecting maritime traffic. Shipping data showed tanker movements through the Strait of Hormuz fell to their lowest level in two months, with several vessels switching off their tracking systems as operators sought to minimise security risks.
Besides, commercial shipping advisory groups reported reduced traffic levels following attacks on vessels in recent days.
The Strait of Hormuz normally carries about one-fifth of global oil and liquefied natural gas supplies, making it the world’s most important energy chokepoint. So, any prolonged disruption could tighten global crude supplies, fuel inflationary pressures and keep energy prices elevated.
The renewed military escalation has added a significant geopolitical risk premium to oil prices, with traders closely watching tanker traffic and the possibility of further disruptions to exports from the Gulf.
The latest escalation has also cast doubt on last month’s interim US-Iran agreement aimed at reopening the Strait of Hormuz and creating a 60-day window for further negotiations, as both countries continue to exchange attacks across the region.
Meanwhile, the Dangote Petroleum Refinery has transitioned to US dollar denominated sales of refined petroleum products, setting the ex-depot price of petrol at $0.779 per litre, a source told THISDAY yesterday.
According to the source, the refinery conveyed the decision in a notice to petroleum marketers and customers, stating that all previously issued naira denominated Proforma Invoices (PFIs) and Deal Recaps for gantry and coastal transactions had become invalid following the transition to dollar pricing.
The notice stated that all payments are henceforth to be made in US dollars, with the new pricing taking effect from July 13, 2026. Under the revised template, diesel will sell at $1.087 per litre, aviation fuel at $0.942 per litre, while coastal PMS deliveries have been fixed at $1,044.62 per metric tonne.
However, the refinery clarified that the change does not apply to Liquefied Petroleum Gas (LPG) transactions.
The move represents a significant change in Dangote Refinery’s commercial operations, reversing the naira based product sales introduced under the federal government’s naira for crude initiative, which commenced in October 2024.
The source attributed the decision to a growing currency mismatch between crude oil procurement and product sales. It explained that the refinery now receives a larger proportion of its crude oil supplies under dollar denominated arrangements, while much of its refined products had continued to be sold in naira, increasing its exposure to foreign exchange risks.
According to the source, the refinery considered it necessary to align the currency used for product sales with that used to purchase crude oil, especially amid persistent exchange rate volatility and fluctuations in international crude prices.
The development is expected to have far reaching implications for petroleum marketers and could influence domestic fuel pricing, as the naira equivalent of the refinery’s dollar benchmark will depend on prevailing exchange rates, logistics costs and other distribution expenses.
It also raises fresh questions about the future of the federal government’s naira-for-crude policy, which was introduced to support local refining, ease pressure on foreign exchange demand and stabilise domestic fuel prices.
