Nigerian fuel marketers are expected to review their pump prices upward following the rise in crude oil prices above $100 per barrel, driven by growing concerns over supply disruptions from the Middle East.

The development could put fresh pressure on the cost of petrol and other petroleum products in Nigeria, as higher crude prices increase the cost of importing and purchasing refined products.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, in Lagos, Joseph Ehimen, said marketers would review their prices based on the cost of their next supplies.

Depot prices in Lagos have already risen, with petrol selling between N1,266 and N1,300 per litre, depending on the depot and location.

The situation is also being influenced by Nigeria’s crude oil production. Data showed that the country’s output dropped to about 1.44 million barrels per day in July from 1.51 million barrels per day in June, falling below the government’s 1.50 million barrels per day target.

Industry stakeholders warned that a sustained increase in crude prices could raise transportation, logistics and production costs, adding to inflationary pressure on businesses and consumers.

However, higher crude prices could also benefit Nigeria through increased government oil revenue if production is maintained and disruptions are limited.

Oil and gas operators have continued to call for measures to strengthen domestic refining, improve crude supply to local refineries and reduce distribution costs to cushion the impact of rising international oil prices on Nigerian consumers.