GMD of NNPCL, Engr. Bayo Ojulari
Following the shock dynamics of rising international crude oil price and usual vulnerability of Nigerian economy, strong indications have emerged that the pump price of Premium Motor Spirit (petrol) may rise to N1,000 per litre nationwide if the rising trend in crude price persists.
Already, petrol marketers are fearing possible tumble in the pump prices of both imported and locally-produced petroleum products.
The increase in petrol prices came at a time when the Dangote Petroleum Refinery raised petrol prices from N739 to N839. Also, oil prices rose above $70 per barrel on Thursday, the highest in the past five months.
The commodity rose by three per cent on Thursday on rising concerns that global supplies could be disrupted if the United States attacks Iran, one of the biggest crude producers of the Organisation of Petroleum Exporting Countries.
According to Reuters, Brent futures rose $2.31, or 3.4 per cent, to settle at $70.71 a barrel, while US West Texas Intermediate gained $2.21, or 3.5 per cent, to trade at $65.42. As of Friday afternoon, oilprice.com reports that Brent settled at $70.89 while WTI was $65.80 a barrel, indicating a further rise in price.
It is worth stating that Brent crude is the global benchmark for crude oil, and a rise in its price affects the pricing dynamics of refined petroleum products globally.
Reuters reports that the US-Iran tension pushed both crude benchmarks into technically overbought territory, with Brent closing at its highest since July 31 and WTI closing at its highest since September 26.
US President Donald Trump is weighing options against Iran that include targeted strikes on security forces and leaders to inspire protesters, multiple sources said, even as Israeli and Arab officials said air power alone would not topple Tehran’s clerical rulers.
In Iran, it was said that plainclothes security forces rounded up thousands of people in a campaign of mass arrests and intimidation to deter further protests.
“The immediate (market) concern is the collateral damage done if Iran takes a swing at its neighbours or, possibly even more tellingly, it closes the Strait of Hormuz to the 20 million barrels per day of oil that navigates it,” PVM analyst John Evans was quoted as saying.
Iran was the third-biggest crude producer in the Organisation of the Petroleum Exporting Countries, behind Saudi Arabia and Iraq, in 2025, according to US Energy Information Administration data.
According to the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, crude oil and condensate exchange rates are the major determinants of fuel prices, saying a change in either would affect how petroleum products would be sold in the domestic market.
