Petrol Prices: Marketers Warn Nigerians of Fresh Increase as Crude Oil Surges Above $100 Per Barrel
- Oil marketers are preparing to raise petrol prices after global crude oil prices rose above $100 per barrel
- Experts warn that higher fuel costs could increase transportation, business and household expenses and worsen inflation
- They urged the FG to support Nigerians through cheaper transport and better use of increased oil revenues rather than restoring broad fuel subsidies
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Oil marketers are preparing to increase the pump prices of petroleum products after international crude oil prices climbed above $100 per barrel.
The development could put fresh pressure on petrol prices and increase operating costs for businesses and households already dealing with high inflation.
Source: UGC
Marketers spoke as economic experts urged the federal government to take steps to cushion Nigerians from another possible increase in petroleum-product prices.
According to Vanguard, the OPEC Basket, which includes Nigeria’s Bonny Light, rose above $100 per barrel from more than $95, up about 5.2%.
Brent crude also climbed to $100.60 per barrel from $97, representing a 2.77% increase, while Murban crude jumped 6.83% to $118.30 per barrel, according to data from Oilprice.com.
The sharp rise has been linked to escalating tensions in the Middle East and concerns about possible disruptions to global crude oil supplies.
The development has raised fresh concerns about its potential effect on fuel prices, transportation costs and the broader Nigerian economy.
Joseph Ehimen, Lagos State Chairman of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that marketers were likely to adjust their prices.
“Certainly, we are going to adjust the pump prices after our next purchases. It will be based on market forces, factoring in all cost elements, including logistics to filling stations,” he said.
Higher crude prices may increase costs
Economist and communications expert Clifford Egbomeade said the immediate impact of rising crude prices would be felt through higher costs across the economy.
“The immediate effect on Nigeria is a cost shock. Higher crude prices will raise the cost of diesel, transport, freight and other energy-intensive inputs, putting pressure on business margins and household incomes,” he said.
Egbomeade noted that Nigeria could benefit from higher oil export earnings if the government properly manages the additional revenue and sustains crude production.
However, he warned that a prolonged rise in global oil prices could worsen existing economic pressures.
Source: UGC
Expert suggests transport support instead of fuel subsidy
Adetunji Oyebanji, immediate past Managing Director and Chief Executive Officer of 11 Plc, also urged the government to focus on measures that would reduce the wider impact of rising fuel prices.
Oyebanji maintained that Nigerians would continue to feel the effect of crude price movements because the downstream petroleum market is deregulated.
“I just think that as these prices are going up, rather than looking for solutions like, you know, are they going to be subsidising fuel, they should do things like subsidising transportation, like the BRT, and reduce the cost, and also that of government hospitals or schools and other things that can make life easier for people,” he said.
He warned that reinstating petrol subsidies could place a heavy financial burden on the government, especially as pump prices have risen significantly.
Source: Legit.ng
