International crude oil prices have crossed the $100-per-barrel mark, raising fresh concerns that Nigerian motorists and businesses could soon face higher petrol prices. Oil marketers say they are preparing to review pump prices as rising global crude costs increase their operating and logistics expenses, while experts are urging the Federal Government to act quickly to cushion the impact on consumers.
The latest surge is being driven largely by escalating tensions in the Middle East and fears of further disruptions to global oil supplies. The OPEC Basket, which includes Nigeria’s Bonny Light, climbed above $100 per barrel from more than $95, while Brent crude rose to $100.60 per barrel. Murban crude also jumped to $118.30 per barrel, according to market data cited in the report.
For Nigerian consumers, the development could mean higher costs beyond the filling station. PETROAN Lagos State Chairman, Joseph Ehimen, said marketers would adjust pump prices after their next purchases, with new prices determined by market forces and costs such as logistics. Analysts also warn that sustained high crude prices could push up diesel, transport, freight and other energy-related expenses, putting additional pressure on businesses and household incomes.
Despite the international price rally, petrol prices in Lagos remained relatively stable at between ₦1,266 and ₦1,300 per litre at mid-day market checks. Dangote Refinery sold at ₦1,266 per litre, while MRS was at ₦1,267 and NIPCO at ₦1,280. However, some depots recorded increases, with Bono posting the largest rise of ₦30 to ₦1,300 per litre. The limited movement suggests the global crude shock has not yet been fully passed on to the domestic petrol market.
The situation presents a mixed picture for Nigeria. Higher crude prices could boost government revenue and foreign-exchange inflows, but the country’s ability to fully benefit is constrained by falling crude production, which dropped to 1.44 million barrels per day in July from 1.51 million bpd in June. Business groups and analysts are therefore calling for stronger domestic refining, adequate crude supply to local refineries, improved transportation infrastructure and targeted support for vulnerable households and MSMEs to prevent the oil-price shock from worsening inflation and the cost of living.
source: vanguard
