Petrol Price Hike Looms As Crude Oil Hits $100 Per Barrel
A fresh increase in the pump price of petrol may be imminent across Nigeria following the surge in global crude oil prices above $100 per barrel, a development that has raised landing costs for imported fuel and heightened supply concerns.
Industry stakeholders said the sharp rise in crude prices, coupled with dwindling depot inventories, is placing pressure on marketers to review retail prices. While consultations are ongoing, no official nationwide price has been announced.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, urged Nigerians to avoid speculation, noting that marketers and stakeholders were assessing the situation before reaching any conclusions.
Despite the caution, signs of a price adjustment have already emerged. Several filling stations in Lagos were selling Premium Motor Spirit (PMS) at between ₦1,290 and ₦1,300 per litre, with queues reported at some outlets.
A major fuel marketer disclosed that although it recently received a cargo of imported petrol purchased before crude prices crossed the $100 mark, replacing those stocks would be significantly more expensive due to the latest increase in international oil prices.
According to industry sources, higher landing costs are expected to translate into increased pump prices, particularly if import volumes remain low.
Along the Lagos-Ibadan Expressway, independent marketers in Warewa, Arepo and Magboro were dispensing petrol at prices ranging from ₦1,200 to ₦1,300 per litre, while Ardova and Conoil stations in Ikeja sold the product at ₦1,290 per litre.
The latest rally in oil prices followed renewed tensions in the Middle East after Iran-backed Houthi militants reportedly attacked two Saudi oil tankers in the Red Sea, intensifying fears of disruptions to global crude supplies.
The market has also been unsettled by repeated attacks on Russia's Caspian Pipeline Consortium terminal, a major export route for Kazakhstan's crude.
Analysts warn that if geopolitical tensions persist and supply disruptions worsen, Brent crude could climb even higher, further increasing fuel import costs for countries like Nigeria that still rely heavily on imported refined petroleum products.
Market experts say the coming days will determine whether marketers implement another round of pump price increases as they weigh rising international costs against domestic market realities.
Industry stakeholders said the sharp rise in crude prices, coupled with dwindling depot inventories, is placing pressure on marketers to review retail prices. While consultations are ongoing, no official nationwide price has been announced.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Billy Gillis-Harry, urged Nigerians to avoid speculation, noting that marketers and stakeholders were assessing the situation before reaching any conclusions.
Despite the caution, signs of a price adjustment have already emerged. Several filling stations in Lagos were selling Premium Motor Spirit (PMS) at between ₦1,290 and ₦1,300 per litre, with queues reported at some outlets.
A major fuel marketer disclosed that although it recently received a cargo of imported petrol purchased before crude prices crossed the $100 mark, replacing those stocks would be significantly more expensive due to the latest increase in international oil prices.
According to industry sources, higher landing costs are expected to translate into increased pump prices, particularly if import volumes remain low.
Along the Lagos-Ibadan Expressway, independent marketers in Warewa, Arepo and Magboro were dispensing petrol at prices ranging from ₦1,200 to ₦1,300 per litre, while Ardova and Conoil stations in Ikeja sold the product at ₦1,290 per litre.
The latest rally in oil prices followed renewed tensions in the Middle East after Iran-backed Houthi militants reportedly attacked two Saudi oil tankers in the Red Sea, intensifying fears of disruptions to global crude supplies.
The market has also been unsettled by repeated attacks on Russia's Caspian Pipeline Consortium terminal, a major export route for Kazakhstan's crude.
Analysts warn that if geopolitical tensions persist and supply disruptions worsen, Brent crude could climb even higher, further increasing fuel import costs for countries like Nigeria that still rely heavily on imported refined petroleum products.
Market experts say the coming days will determine whether marketers implement another round of pump price increases as they weigh rising international costs against domestic market realities.
