Petrol rises above N1,400/litre as crude oil climbs past $100 per barrel

Petrol prices in Nigeria have surged above N1,400 per litre amid a sharp rise in international crude oil costs. Retail outlets across major cities, including Lagos, Abuja, and Abuja, are now selling Premium Motor Spirit (PMS) at rates ranging from N1,400 to N1,450 per litre. This latest increase follows a steep escalation in domestic fuel prices, which have risen from around N830 per litre before the Middle East crisis earlier this year to over N1,300 in many regions.

The recent price hike is directly linked to a surge in global crude oil prices, with Brent crude crossing the $100 per barrel mark and reaching $107 per barrel on Thursday. The higher costs of domestic refiners and fuel importers have necessitated price adjustments in response to the situation. Consumers are expressing concerns, with some fearing that petrol prices could continue to climb in the coming days.

Analysts note that Dangote Refinery's gantry price increase could potentially elevate pump prices to about N1,500 per litre. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) attributes the ongoing volatility in petrol prices to factors such as crude oil sourcing costs, logistics expenses, transportation challenges, and the country's dependence on a limited number of refineries.

The authority emphasizes that petrol pricing in Nigeria is now fully deregulated and subject to market forces, with elements like crude oil procurement costs, exchange rate fluctuations, and the time lag between crude purchases and refining playing significant roles in determining pump prices nationwide.