The Digest:
Fuel marketers are warning that the pump price of Premium Motor Spirit (petrol) in Nigeria could approach ₦1,000 per litre if the current surge in global crude oil prices continues. The alert follows Brent crude rising above $70 per barrel, driven by geopolitical tensions in the Middle East, particularly involving Iran. This international increase has already prompted the Dangote Refinery to raise its ex-depot price, causing retail prices in major cities like Lagos to range between ₦830 and ₦860. Marketers state that if crude prices remain high, the landing cost of imported petrol could exceed ₦900, forcing a significant price hike at the pumps, exacerbated by exchange rate volatility and operational costs.
Key Points
- The warning signals an impending severe increase in the cost of living and business operations, as transportation and energy costs ripple through the economy.
- It forecasts a major inflationary trigger that would erode household budgets and raise production costs across all sectors.
- Consumers face unprecedented fuel expenses, while marketers operate on thinning margins amidst volatile procurement costs and reduced sales volume.
- The alert directly links Nigeria's domestic fuel market to volatile global geopolitics, underscoring the nation's vulnerability despite local refining.
- Issued as prices are already climbing, the timing prepares the public for a painful economic adjustment and increases pressure on the government for potential intervention.
Sources: Tribune Online
