Crude Oil Surge May Push Petrol and Diesel Prices Higher in Nigeria

Fuel consumers in Nigeria may soon face higher pump prices as global crude oil prices climb above $66 per barrel, with industry experts warning that Brent could reach $80 if current international instabilities persist. The rise in crude, the primary feedstock for refined petroleum products, has heightened concerns about the cost of Premium Motor Spirit (petrol), Automotive Gas Oil (diesel), and household kerosene.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, cited geopolitical tensions in Iran and Venezuela, along with US policy actions in the region, as key drivers of the upward trend. He explained that imported petrol costs will inevitably rise, and even domestically refined PMS may see price adjustments due to crude market volatility.

Global supply disruptions have also contributed to the spike. Drone attacks on Russia’s Novorossiysk terminal, which handles about 2 per cent of daily oil supply, and reported damage at the Caspian Pipeline Consortium in Kazakhstan have fueled fears of constrained supply. These developments pushed Brent crude from $63 to $65 per barrel within days, while US West Texas Intermediate rose to $60.75.

Locally, the Major Energies Marketers Association of Nigeria reported that the landing cost of imported petrol remains above Dangote Petroleum Refinery’s ex-depot price of N699 per litre, standing at N754.96 per litre. Oil marketers warn that continued crude price increases will inevitably translate into higher domestic fuel costs.

Gillis-Harry emphasised the urgent need for functional Nigerian refineries, urging the government to revamp NNPC refineries in Port Harcourt, Kaduna, and Warri. Efficient refinery operations, he noted, would mitigate the impact of international price fluctuations on local consumers.

As crude volatility persists, Nigerians are being advised to brace for a potential increase in fuel costs in the coming weeks, highlighting the intertwined nature of global oil markets and domestic energy pricing.