Fuel marketers are warning that the pump price of Premium Motor Spirit (petrol) in Nigeria could approach ₦1,000 per litre if the current surge in global crude oil prices continues. The alert follows Brent crude rising above $70 per barrel, driven by geopolitical tensions in the Middle East, particularly involving Iran.
This international increase has already prompted the Dangote Refinery to raise its ex-depot price, causing retail prices in major cities like Lagos to range between ₦830 and ₦860. Marketers state that if crude prices remain high, the landing cost of imported petrol could exceed ₦900, forcing a significant price hike at the pumps, exacerbated by exchange rate volatility and operational costs.
Key Points
The warning signals an impending severe increase in the cost of living and business operations, as transportation and energy costs ripple through the economy.
It forecasts a major inflationary trigger that would erode household budgets and raise production costs across all sectors.
Consumers face unprecedented fuel expenses, while marketers operate on thinning margins amidst volatile procurement costs and reduced sales volume.
The alert directly links Nigeria’s domestic fuel market to volatile global geopolitics, underscoring the nation’s vulnerability despite local refining.
Issued as prices are already climbing, the timing prepares the public for a painful economic adjustment and increases pressure on the government for potential intervention.
With global crude prices showing no sign of abating, Nigeria’s deregulated market appears set to test a new, psychologically significant price ceiling, placing immense strain on the populace.
Sources: Tribune Online