Nigeria could be heading for another round of fuel price increases as global crude oil prices climbed above $66 per barrel, raising fresh concerns about the cost of petrol, diesel and kerosene. Brent crude, the global oil benchmark, crossed the $66 mark midweek, triggering fears that the higher feedstock cost will soon filter down to pump prices across the country.
Industry stakeholders attribute the rising oil prices to growing geopolitical instability in key oil-producing regions, particularly Iran and Venezuela, alongside escalating tensions involving the United States. Marketers warn that unless calm returns to these regions, crude oil prices could continue their upward march, with projections suggesting a possible rise to as high as $80 per barrel in the near term.
Confirming the situation, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said Nigerians should prepare for higher fuel prices. He explained that crude oil remains the primary input for refined petroleum products, meaning any sustained increase in crude prices will inevitably push up the cost of both imported and locally refined fuel.
Gillis-Harry noted that while higher crude prices may boost Nigeria’s foreign exchange earnings, the gains come at a cost for consumers. “The masses will bear the brunt through higher pump prices,” he said, adding that instability in the Middle East could push crude prices to $80 before the end of the month if current trends persist.
Meanwhile, data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported petrol remains significantly higher than the ex-depot price of fuel from the Dangote Petroleum Refinery. With imported petrol landing at about ₦755 per litre against Dangote’s ₦699 per litre, marketers warn that sustained increases in crude prices could force upward adjustments. Industry leaders are again calling on the Federal Government to fully revive Nigeria’s state-owned refineries in Port Harcourt, Warri and Kaduna to reduce exposure to global oil price shocks.
source: punch