Just days after a recent pump price adjustment, Nigerians may be heading into another round of fuel price increases as crude oil prices continue to climb on the international market. Nigeria’s Bonny Light crude rose from $64 to $70.30 per barrel, marking about a 10% increase and its highest level this year.
Brent crude also climbed to $70.15 per barrel, while Murban reached $68.01. In response, many filling stations have already raised pump prices to around ₦850 per litre, up from ₦750 earlier in the week. Dangote Refinery increased its gantry price from ₦699 to ₦799 per litre, with NNPC Retail outlets and independent marketers implementing further hikes.
Analysts attribute the crude price surge to declining U.S. crude inventories and rising geopolitical tensions involving Iran, which have raised fears of global supply disruption. Experts note that the increase is driven more by political uncertainty than by a spike in global demand.
For Nigeria, the impact is twofold. Higher crude prices could boost government revenue and foreign reserves. However, due to deregulation, increases in crude prices quickly translate into higher petrol, diesel, and cooking gas prices locally.
Economists warn that rising fuel costs will increase transportation, production, and logistics expenses, especially for small and medium-sized businesses that rely heavily on diesel due to unreliable power supply. This chain reaction is expected to worsen inflation and further strain household purchasing power.
