Nigerians should brace for a possible increase in the pump price of premium motor spirit (PMS), popularly known as petrol, as global crude oil prices continue to rise.
Oil marketers revealed that the cost of Brent crude, the global benchmark, recently surged to $81 per barrel.
This development has led to an increase in the ex-depot price of petrol, which rose from ₦907 per litre on Friday to ₦950 by Monday—a 4.74 percent increment.
This comes just three weeks after the Nigerian National Petroleum Company (NNPC) Limited reduced the ex-depot price of petrol to ₦899 per litre in Lagos.
Similarly, the Dangote Refinery had lowered its ex-depot price to ₦899 in late November 2024 from a previous ₦970.
Billy Gillis-Harry, president of the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN), explained that the pump price of petrol is directly tied to production costs, which are influenced by global crude oil prices.
“Global crude oil price will always have an impact on production costs. Once production costs rise, it inevitably affects the price of PMS,” Gillis-Harry said.
He noted that although local production by refineries such as Dangote has eliminated costs associated with logistics, importation, insurance, and freight, the dependency on crude oil pegged to the dollar still affects pricing.
“Local production has guaranteed energy security,” he added. “For the first time in December, there were no struggles to purchase PMS or oil.”
Ukadike Chinedu, publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted that Nigeria is not immune to global oil price fluctuations.
“Nigeria’s crude prices rise and fall in alignment with global trends. With Brent crude moving from $72 to $82–$83 per barrel, it’s inevitable that the cost of local production will also increase,” Chinedu stated.
He warned that Nigerians should “expect a gradual increase in the petrol pump price” as a result of the rising production costs.
The anticipated price hike underscores the persistent challenge of balancing domestic production costs with international market realities.
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