Petrol Price May Hit N1,000 Per Litre as Global Crude Oil Prices Surge

The pump price of Premium Motor Spirit (PMS), popularly known as petrol, may rise to as much as N1,000 per litre in the coming days following a sharp increase in global crude oil prices, fuel marketers have warned.

According to industry stakeholders who spoke with Saturday PUNCH, the recent surge in international crude prices to over $70 per barrel is already exerting pressure on the cost of both imported and locally refined petroleum products. The development comes shortly after the Dangote Petroleum Refinery raised its petrol price from N739 to N839 per litre.

Oil prices climbed above $70 per barrel on Thursday, the highest level in over five months, amid rising geopolitical tensions in the Middle East, particularly fears of supply disruptions linked to possible United States military action against Iran. Brent crude, the global benchmark, settled at over $70 per barrel, a development that directly affects refined fuel prices worldwide.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said crude oil prices and exchange rates remain the major determinants of fuel prices in Nigeria. He warned that if the current crude price rally persists, petrol could sell for up to N1,000 per litre, especially in areas far from refineries and fuel depots.

Ukadike noted that rising prices are already reducing consumer demand, as many Nigerians cut back on fuel usage due to higher costs. He added that marketers are also facing pressure on their purchasing power, as more naira is required to secure fewer litres of fuel.

Another major oil marketer and petrol importer confirmed that the landing cost of PMS could exceed N900 per litre if crude prices continue their upward trend, stressing that market forces largely determine pump prices.

Meanwhile, despite the rising prices, the Dangote Petroleum Refinery has reaffirmed its capacity to meet Nigeria’s fuel demand, stating that it can supply more than the country’s daily consumption of petrol, diesel, and aviation fuel. The refinery said increased local production would help reduce import dependence and improve supply stability, even as global oil prices remain volatile.