Hike in Pump Prices as US/Iran Conflict Lingers, the price of fuel has been hiked to 1,400 in Nigeria following ongoing tension in the Middle East, which has sparked global oil prices
Kano—
The prices of Premium Motor Spirit(petrol) have witnessed a surge nearing about N1,400 per litre across Nigeria as the United States and Iran fail to agree on a ceasefire that would lead to the reopening of the Strait of Hormuz.
As the ongoing conflict between Iran and the US deepens,in addition to the exit of the United Arab Emirates from the Organisation of the Petroleum Exporting Countries on Tuesday, the prices of petrol have continued to rise.
From $105 per barrel on Monday, the price of Brent crude jumped to $118 on Wednesday. Following the development,Dangote Petroleum Refinery jerked up its petrol gantry price from N1,200 to N1,275 per barrel.
According to recent data available on the Petroleumprice.ng website and confirmation from a Dangote refinery official on Wednesday revealed that the refinery raised its petrol loading price from N1,200 per litre to N1,275 per litre, while coastal supply prices climbed to N1,215 per litre.
Hike In Pump Prices As US/Iran Conflict Lingers
Another source familiar with the story
disclosed that the refinery halted its pro forma invoice entry process at about 4 pm on Tuesday, effectively disrupting normal supply scheduling across its loading system. The suspension, according to the sources, led to an immediate stoppage of both petrol and diesel sales to marketers.
According to a separate report by Oilprice.com,the Nigerian National Petroleum Company Limited has also raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes.
The report revealed that Nigeria was reaping the benefits of the US-Iran war, as the NNPC increased the price of its flagship grade, Bonny Light, by $6.13 per barrel for May compared to April. Forcados was also raised by $7.01 per barrel.
“Nigeria reaps the benefits of the Iran war. Nigeria’s national oil company NNPC has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, hiking its flagship grade Bonny Light by a whopping $6.13 per barrel compared to April, while Forcados is up by $7.01 per barrel,” the report stated.
Hike In Pump Prices As US/Iran Conflict Lingers
Analysts and marketers had projected that the development could lead to the Dangote Refinery paying more for crude,thereby increasing the pump prices across Nigeria and further deepening the economic woes of common Nigerians .
It was observed that filling stations wasted no time in moving up their pump prices from an average of N1,250 to over N1,300 per litre on Wednesday in some states.Some filling stations in Lagos sold petrol at prices ranging from N1,315 to N1,350 as of Wednesday while in Kano and Kaduna, petrol was sold between 1,400_430 naira per liter.
PETROAN PRESIDENT SPEAKS
Speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said prices may continue to increase unless US President Donald Trump allows peace to reign in the Middle East.
Gillis -Harry said fuel sellers have been subjected to sudden price volatility that makes business decisions somewhat difficult noting that the Federal Government is not taking steps to support the masses despite making more gains from the high oil prices.
Hike In Pump Prices As US/Iran Conflict Lingers
“This is what we have been introduced to, price volatility. And then the government is not making any statements about it, so it’s worrisome. At least, the government could come up with some measures. We are making some gains now on the price of crude oil.
The government can give some back to reduce the cost of transportation, so food is not going to be expensive, along with a few other things. That’s what we have advised,” he said.
The PETROAN boss said the price of petrol could go above N1,500 per litre if the Middle East crisis is not de-escalated
” If you go back to our predictions, I stated it there because Mr Trump is not very clear as to what he wants, in my opinion; if it is to decimate the Iranian nuclear facility or if it is to take over the crude oil as they are taking over Venezuela’s. I don’t think we know what he wants exactly. So we are not sure we are seeing the end of that crisis” he added
“You can see that the UAE has opted out of OPEC, and the speed at which they are opting out is very fast, which is why we have also advised that Nigeria should think out of the box and look at how production can be improved. It doesn’t need any rocket science; we have the reserves. It is to encourage investors and make sure that host communities are at peace and that violence is no longer the focus. The assets that were discovered in Bauchi and elsewhere, in which billions of dollars were invested, have not achieved anything” he said
Hike In Pump Prices As US/Iran Conflict Lingers
“So we should pay attention to all those areas and increase our production value and production speed so we can at least clearly put 2 million barrels into domestic refining. That will be much better because we will then become a refining hub to guarantee jobs, improve businesses, and make our economy more active. People will work for reasonable money and pay better taxes without grumbling. That’s where we are,” he advised
“Gillis-Harry said the Dangote refinery showed its influence by changing prices at will, saying retailers will keep adjusting. “Dangote has increased the price again because he is the lord of the manor. So we will keep adjusting,” he added.
The PETROAN boss maintained that the NNPC oil price hike contributed to the petrol price increase as a result of the closure of the Strait of Hormuz.
” Every single increase from any quarter is because we are not trading locally. All products in Nigeria are still internationally benchmarked. Regardless of whether we’re paying naira for crude for local refining, it’s still measured in the dollar equivalent. The only thing it has done is that you’re not going to scramble for forex to buy the crude that you’re going to refine here” he said
Hike In Pump Prices As US/Iran Conflict Lingers
“We advise that that privilege should be extended to all refineries, be they modular or not, at least the refineries that are producing PMS or are about to produce,” he added
The spokesperson for the Crude Oil Refiners Association of Nigeria, Eche Idoko, said in an interview with Channels TV that the association had consistently pushed for a domestic pricing arrangement that reflects Nigeria’s peculiarities.
According to Idoko, crude supplied to local refineries should be priced based on locally designed pricing instead of using Brent as a benchmark.
“If you are using Brent to benchmark our pricing, the factors that are affecting the Brent pricing will still affect the price at which you are landing crude here. What we have always insisted on is that those elements in Brent that do not apply to the trade between the local refinery and the oil producers should be discounted. And like that, you get the actual cost of crude for local refineries,” he said
Hike In Pump Prices As US/Iran Conflict Lingers
The war in the Middle East triggered a surge in oil prices when the Strait of Hormuz was blocked by Iran. From $66 per barrel on February 28, Brent, jumped above $100 per barrel.
As a result, Dangote raised its petrol gantry price from N774 to N1,275.
Meanwhile, the US continues to seek to pile pressure on Iran with the naval blockade outside the Strait of Hormuz as the Trump administration signals the blockade is yielding results and will not be lifted anytime soon, Oilprice.com reports.
“While the surviving IRGC leaders are trapped like drowning rats in a sewage pipe, Iran’s creaking oil industry is starting to shut in production, thanks to the US blockade,” US Treasury Secretary Scott Bessent said in a post on X on Tuesday
The increase in the price of PMS has plunged millions of Nigerians already living below the poverty into more hardship and harsher economic realities.
