Fuel consumers in Nigeria may face higher pump prices soon as global crude oil prices continue to climb. On Wednesday, Brent crude the international benchmark traded above $66 per barrel, sparking concerns that the cost of refined petroleum products, including petrol, diesel, and kerosene, could increase in the coming weeks.
Industry experts attribute the surge to geopolitical tensions in Iran and Venezuela, as well as actions by the United States affecting these oil-producing nations. Analysts warn that crude oil could climb to $80 per barrel if instability persists.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, told The PUNCH that higher crude prices directly impact the cost of refined products. “Crude oil is the main feedstock for petrol and other refined fuels. When its price rises, the cost of domestic and imported petrol naturally increases,” he explained.
He noted that while the government may gain more foreign exchange from rising crude prices, the effect will be felt by consumers at the pumps. “Even with foreign exchange benefits, higher crude prices mean more expensive fuel for Nigerians,” Gillis-Harry added.
Recent events in the global oil market have contributed to price volatility.
Drone attacks on Russia’s Novorossiysk terminal, which handles about two percent of the world’s daily oil supply, disrupted operations, while pipeline issues in Kazakhstan also raised concerns about supply shortages.
Locally, the landing cost of imported petrol remains above the ex-depot price of N699 per litre at the Dangote Refinery. Data from the Major Energy Marketers Association of Nigeria show a slight reduction in landing costs, from N758 last week to N754.96 on Wednesday, but marketers warn that fuel prices may rise further if crude continues to spike.
Gillis-Harry also called for better management and revamp of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri, emphasizing that fully functional local refineries could help stabilize fuel prices.
