Petrol prices in Nigeria may rise as crude oil hits $66/barrel, amid global supply concerns and import dependency

Petrol and other refined petroleum products in Nigeria may soon become more expensive following a spike in global crude oil prices, which crossed $66 per barrel on Wednesday.

Also read: Impeachment: Will prayers save Fubara?

Industry experts warn that the instability in Iran and Venezuela, alongside US actions in the region, could push crude costs even higher, with potential knock-on effects on fuel pump prices.

Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), told The PUNCH that both imported and domestically produced petrol may see price increases.

“It is simple economics. Crude oil is the main feedstock for refined petroleum products. As the price of crude grows, the costs of these products are bound to rise,” Gillis-Harry said.

He projected that crude oil prices could reach $80 per barrel by the end of the month, which would raise domestic fuel prices despite any gains in foreign exchange earnings for the government.

Gillis-Harry emphasised that Nigeria currently relies heavily on imported petrol and a single major domestic refiner, noting that disruptions in global supply, such as the recent drone attacks on Russia’s Novorossiysk terminal and the Caspian Pipeline Consortium infrastructure in Kazakhstan, have intensified volatility.

Data from the Major Energies Marketers Association of Nigeria (MEMAN) indicated that the landing cost of imported petrol remained above N699 per litre, while Dangote Petroleum Refinery’s gantry price held steady at N699 per litre.

MEMAN reported a slight drop in landing cost to N754.96 per litre from N758 the previous week.

Gillis-Harry urged the Federal Government to revamp the NNPC refineries in Port Harcourt, Kaduna, and Warri, stressing that improved domestic refining would reduce import dependency and help stabilise fuel prices.

Also read: AFCON 2025: Okon-Akpan Blames Poor Officiating for Eagles Exit

“With proper operations at our refineries, we can mitigate the impact of global crude price spikes and secure fuel affordability for Nigerians,” he said.