Oil marketers have urged Nigerians to prepare for a possible rise in the price of Premium Motor Spirit (PMS) to about ₦1,500 per litre as tensions between the United States, Israel and Iran continue to drive volatility in global energy markets.
Gatekeepers News reports that the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, gave the warning while speaking on The Morning Brief on Channels Television on Tuesday during a discussion on the impact of global conflict on fuel prices.
According to him, although petrol prices are rising, the steady supply from the Dangote Petroleum Refinery is helping Nigeria avoid fuel shortages.
“The reality is that if you look at the volatility in the price from what we are seeing today, the Dangote Refinery is the salvation for us, due to the consistent source of product, which is much more important at this time than anything.
“The availability of product is much more important than pricing. The pricing we predicted has risen above ₦1,000 per litre, the other time, to ₦1,175 at the gantry.
“By the time we add the charges, logistics, and others, the price will get higher and higher. So, yes, ₦1500 per litre is not far-fetched. It should not make us panic. It is better for us to have the product available, be able to do our business, and get some level of energy security than not having it,” he said.
Dangote Refinery Raises Petrol Price
The warning followed a fresh price adjustment by Dangote Petroleum on Monday, raising its ex-depot petrol price to ₦1,175 per litre, while Automotive Gas Oil (diesel) increased to ₦1,620 per litre.
The revision marks the fourth price adjustment in less than two weeks amid global oil market volatility.
Under the new pricing structure, petrol rose significantly from the previous ₦995 per litre, while diesel increased from ₦1,430 per litre.
The price hike coincided with a surge in global oil benchmarks, with Brent crude rising to $102.8 per barrel and West Texas Intermediate (WTI) climbing to $101 per barrel as of Monday afternoon.
The Middle East conflict has continued to drive uncertainty in global energy markets, with oil prices soaring about 30 percent earlier in the week over fears of supply disruptions.
The ripple effects have been felt across Nigeria’s downstream petroleum sector, as depot operators and fuel marketers adjust supply costs in response to the new pricing announced by the country’s largest refinery.
Dangote Refinery Exposed to Global Crude Prices
Speaking on the issue, the Managing Director and Chief Executive Officer of Dangote Petroleum, David Bird, explained that although Nigeria introduced a crude-for-naira policy to allow local refineries buy crude in local currency, pricing is still tied to international oil benchmarks.
As a result, the refinery continues to purchase Nigerian crude at global market prices rather than at discounted rates.
Trump Moves to Stabilise Oil Market
Meanwhile, United States President Donald Trump said his administration would waive certain oil-related sanctions to boost global supply and ease price pressures triggered by the ongoing conflict.
“We’re also waiving certain oil-related sanctions to reduce prices,” Trump told reporters after talks with Russian President Vladimir Putin, also mentioning Chinese leader Xi Jinping.
“We have sanctions on some countries. We’re going to take those sanctions off till this straightens out,” he added.
Oil Market Reacts to De-escalation Comments
Oil prices later eased after Trump suggested the conflict could soon end.
“I think the war is very complete, pretty much. They have no navy, no communications, they’ve got no air force,” Trump told CBS News in a phone interview.
“If you look, they have nothing left. There’s nothing left in a military sense,” he added.
The US president also warned that Iran would face a massive response if it attempted to block oil shipments through the Strait of Hormuz, a strategic waterway through which roughly one-fifth of global oil supplies pass.
