Petrol to hit ₦1,000/ per litre as marketers sound alarm

The price of petrol in Nigeria may soon rise to about ₦1,000 per litre following an increase in global crude oil prices.

Fuel marketers told Saturday PUNCH that crude oil prices have climbed above $70 per barrel, and this could lead to higher pump prices for petrol, whether imported or refined locally.

Recently, the Dangote Petroleum Refinery increased its petrol price from ₦739 to ₦839 per litre. At the same time, crude oil prices rose to their highest level in five months, driven by growing tension in the Middle East, especially fears of a possible conflict between the United States and Iran.

According to international reports, Brent crude oil rose to about $70.89 per barrel, while US West Texas Intermediate climbed to around $65.80 per barrel. Brent crude is the global benchmark, and when its price goes up, the cost of refined petroleum products also increases worldwide.

Experts warned that oil supply could be disrupted if Iran attacks neighbouring countries or blocks the Strait of Hormuz, a major route through which about 20 million barrels of oil pass daily.

Iran is one of the top oil producers in the Organisation of Petroleum Exporting Countries (OPEC), ranking behind Saudi Arabia and Iraq.

Marketers Raise Alarm

Speaking on the situation, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said petrol prices are directly affected by crude oil prices and exchange rates.

He explained that if crude oil prices continue to rise, petrol could sell for as much as ₦1,000 per litre, especially in areas far from refineries and fuel depots.

Ukadike said marketers do not want price increases, but market forces make them unavoidable when crude prices go up.

He also noted that higher fuel prices are putting pressure on marketers’ finances and reducing their ability to buy large volumes of petrol. As a result, fuel sales have slowed, with many consumers cutting back on usage compared to the festive season.

Import Costs Rising

A major oil marketer and petrol importer also confirmed that the cost of importing petrol is rising. According to him, the landing cost of petrol could soon exceed ₦900 per litre if crude oil prices remain high.

He explained that petrol was previously sold close to ₦1,000 per litre when crude prices were around $75 per barrel and the exchange rate was higher, adding that current market conditions point in the same direction.

Current Pump Prices

Following the Dangote refinery’s recent price increase, many filling stations have adjusted their prices.

In Lagos, petrol is selling for between ₦830 and ₦859 per litre. NNPC Limited sold petrol at ₦849 per litre, while MRS filling stations sold at ₦839. Some outlets sold slightly below this price.

Dangote Refinery Responds

The Dangote Petroleum Refinery said it has enough capacity to meet Nigeria’s fuel needs and more.

According to the refinery, it can supply:

75 million litres of petrol daily (against Nigeria’s estimated demand of 50 million litres),

25 million litres of diesel daily (demand is about 14 million litres),

20 million litres of aviation fuel daily (demand is about four million litres).

The company said supplying more than national demand helps reduce fuel imports, improve supply stability, and strengthen Nigeria’s energy security.

Dangote also reaffirmed its commitment to working with regulators and stakeholders to ensure steady fuel supply and market stability as Nigeria moves away from fuel import dependence.