Marketers Warn Petrol Could Reach ₦2,000/Litre As Oil Prices Spike
Rising Tensions Shake Global Energy Markets
ESCALATING tensions in the Middle East are beginning to ripple through Nigeria’s fuel market, with industry operators warning that petrol prices could soar to ₦2,000 per litre if the crisis persists.
The warning came from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), whose National President, Billy Gillis-Harry, said the conflict involving Iran, Israel and the United States has already triggered major disruptions in global oil markets.
According to him, ongoing missile and drone attacks in the region are increasing risks to oil production facilities and maritime shipping routes.
As a result, global crude oil prices have surged, pushing petroleum product prices higher across international markets.
Nigeria’s Vulnerability to Global Oil Prices
Data from the global benchmark Brent Crude shows prices climbing above $110 per barrel, representing one of the sharpest increases in recent months.
Analysts say the spike highlights Nigeria’s vulnerability to global market volatility.
Although Nigeria remains Africa’s largest crude oil producer, the country still depends heavily on imported refined petroleum products.
This dependence means local pump prices quickly react to global oil price changes.
At several filling stations in Abuja and neighbouring areas, petrol prices were reported between ₦1,020 and ₦1,071 per litre during the weekend.
Dangote Refinery Raises Gantry Prices
The Dangote Petroleum Refinery has also adjusted its ex-depot price for petrol.
The refinery increased the gantry price of Premium Motor Spirit to ₦1,175 per litre, representing the third upward revision in a week.
The new rate is ₦180 higher than the ₦995 per litre announced a few days earlier.
In addition, the refinery raised the gantry price of diesel to ₦1,620 per litre.
Market operators say the price adjustments reflect higher crude oil costs and increased landing expenses for fuel imports.
Push for Local Refining
Amid the rising prices, PETROAN has urged the leadership of NNPC Limited, led by Bayo Ojulari, to prioritise domestic refinery production.
Gillis-Harry called for the immediate operationalisation of government-owned refineries, including the Port Harcourt Refinery and Warri Refinery.
He argued that domestic refining could help moderate the country’s exposure to international oil market fluctuations.
Economic Pressure Mounts
Energy economist Amaechi Ezekwueche warned that if crude prices approach $120 per barrel, petrol prices in Nigeria may rise further.
Such increases could significantly impact the cost of living by raising transportation fares, production costs and consumer prices.
Petrol remains a critical driver of economic activity across Nigeria, powering transportation and household mobility, while diesel is widely used by industries and manufacturing firms.
Stakeholders warn that continued volatility in global oil markets could deepen economic pressure on Nigerians unless domestic refining capacity improves or international crude prices stabilise.
