Petrol Prices Set to Rise as Crude Oil Tops $66 Per Barrel

The cost of Premium Motor Spirit (petrol) and other refined petroleum products, including diesel and household kerosene, is expected to rise as crude oil, the primary feedstock for refined fuel, crossed $66 per barrel on Wednesday. Brent crude, the global benchmark, traded above $66, while other oil grades also gained, raising concerns that domestic fuel prices could increase in the coming days. Industry experts cited geopolitical instability in Iran and Venezuela, alongside recent actions by the United States concerning both countries, as key factors driving crude prices. They warned that crude costs may continue to rise unless stability is restored in these major oil-producing nations. Some oil marketers project that prices could hit $80 per barrel amid ongoing uncertainties in the international market. Crude oil remains the main input for producing refined petroleum products, while foreign exchange rates continue to influence the cost of imported fuel. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), confirmed that fuel consumers should prepare for potential price increases. He said, “Crude oil is the primary feedstock for refined petroleum products, so as its price rises, the cost of these products inevitably goes up. With only one major refinery currently operating in Nigeria, it is uncertain whether domestic prices can be maintained. Imported petrol will rise, and the same applies to locally produced fuel. Geopolitical instability in Iran and Venezuela is impacting global supply, and even US interventions may not lower international prices. Consumers should brace for higher fuel costs in the near term.” Gillis-Harry also noted that crude prices could reach $80 per barrel before the end of the month, which would generate more foreign exchange for the government but increase domestic fuel prices. Global oil markets have seen significant developments pushing prices above the $60 per barrel level. Recent drone attacks on Russia’s Novorossiysk terminal, a key export hub handling roughly 2% of global oil supply, and disruptions at the Caspian Pipeline Consortium in Kazakhstan have intensified supply concerns. Brent crude rose from $63 per barrel on Monday to around $65.14 on Tuesday, while US West Texas Intermediate climbed from $59 to $60.75 per barrel. Domestically, data from the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported petrol remains above the Dangote Petroleum Refinery ex-depot price of N699 per litre. MEMAN’s latest bulletin recorded the landing cost at N754.96 per litre, slightly lower than last week’s N758. Oil marketers warn that both imported and locally refined fuel prices will rise if crude oil continues to increase. They urged the government to expedite the revamp of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri under the management of the Nigerian National Petroleum Company Limited. Gillis-Harry emphasized, “These refineries must operate efficiently, as their performance is critical to stabilizing the oil sector and impacting domestic fuel pricing positively.”