Nigerians may face another round of petrol price increases following a sustained rise in international crude oil prices, coming just days after filling stations adjusted pump prices upward across the country.
Nigeria’s Bonny Light crude climbed to $70.30 per barrel from about $64 last week, representing roughly a 10 per cent increase and its highest level so far this year. Brent crude rose to $70.15 per barrel from $66, while Murban crude increased to $68.01 per barrel from $65.20.
The rise in crude prices has already filtered into the domestic market, with petrol retailing at an average of N850 per litre, up from about N750 earlier in the week. Marketers attributed the increase to higher global crude oil prices, which determine input costs for refiners.
At the Dangote Refinery, the gantry price of petrol rose by 14.3 per cent to N799 per litre from N699, triggering corresponding increases at retail outlets in Abuja, Lagos and other cities. NNPC Retail outlets adjusted prices to about N835 per litre, while some independent marketers raised prices as high as N900 per litre.
The Independent Marketers Association of Nigeria (IPMAN) said the increases were unavoidable. Its National Public Relations Officer, Chinedu Ukadike, explained that higher crude prices and refinery costs directly affect pump prices, regardless of existing stock levels.
While petrol prices stabilised temporarily on Wednesday, diesel prices rose at several depots, with prices climbing to between N930 and N950 per litre, according to market checks.
Analysts attributed the global oil rally to a sharp decline in United States crude inventories and rising geopolitical tensions involving Iran, an OPEC member capable of disrupting global oil supply. The US Energy Information Administration reported that crude inventories fell by 2.3 million barrels in the week ended January 24.
Energy experts warned that higher crude prices could worsen inflationary pressures in Nigeria. Petroleum economist, Prof. Wumi Iledare, said rising fuel costs would increase transport fares, production costs and household expenses.
Similarly, the Centre for the Promotion of Private Enterprise (CPPE) said while higher oil prices could boost government revenue and foreign reserves, deregulation means consumers will bear the burden through higher energy and logistics costs.
Industry analysts noted that foreign exchange volatility and competition between fuel importers and the Dangote Refinery could further influence pump prices in the coming weeks.
