The pump price of Premium Motor Spirit (petrol) may rise to N1,000 per litre in the coming days following a surge in global crude oil prices, fuel marketers said.
Marketers revealed that the recent jump in crude prices to over $70 per barrel could trigger another increase in both imported and locally refined petroleum products. The rise comes after Dangote Petroleum Refinery recently raised petrol prices from N739 to N839 per litre.
Brent crude, the global benchmark, rose 3.4% on Thursday to settle at $70.71 per barrel, while U.S. West Texas Intermediate crude gained 3.5% to trade at $65.42. As of Friday afternoon, Brent was reported at $70.89 and WTI at $65.80 per barrel.
The surge was driven by concerns that global oil supplies could be disrupted if the United States takes military action against Iran, one of the world’s largest crude producers. U.S. President Donald Trump has been reportedly weighing targeted strikes against Iranian forces and leaders amid widespread protests, while Israeli and Arab officials have said air power alone would not topple Tehran’s leadership.
In Iran, plainclothes security forces have detained thousands to deter further protests, further heightening tensions in the region. Analysts warned that any escalation, including a possible closure of the Strait of Hormuz, which handles about 20 million barrels of oil per day, could significantly affect oil markets.
Chinedu Ukadike, national publicity secretary of the Independent Petroleum Marketers Association of Nigeria, said crude prices and exchange rates remain the main determinants of domestic fuel costs. He warned that petrol could reach N1,000 per litre if the crude surge continues, particularly in areas far from refineries or depots.
“As an independent marketer, we don’t normally want the price of petroleum products to go up; any increase you see now is because of international developments,” Ukadike said. “The crude surge will definitely affect our local market. Prices will come down if crude prices fall.”
Ukadike added that higher petrol prices are also limiting marketers’ purchasing power and slowing sales. “Too much naira is now chasing too few litres of petroleum products,” he said, noting that consumer fuel demand has dropped compared with the December festive period.
