Iran War: ₦1,500/Litre Petrol Better Than Scarcity, Marketers Tell Nigerians

Following the hike in the price of Premium Motor Spirit (PMS), otherwise known as Petrol or fuel, to N1, 200 per litre, Oil marketers have advised Nigerians to brace up for a continued rise in the price to about ₦1500 per litre as the US-Israeli and Iran showed no sign of abating the war.

This is even as the marketers noted that petrol availability currently provided by the Dangote Petroleum Refinery, even though at higher prices, was a better option than scarcity.

“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 the 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.

His stance followed ongoing tension in the Middle East, which has sent energy prices higher than expected.

New Telegraph had earlier reported that Dangote refinery increased the gantry petrol price to ₦1,175 per litre, while Automotive Gas Oil (AGO), commonly known as diesel, was raised to ₦1,620 per litre.

The latest revision marks the fourth consecutive price review in less than two weeks amid global market volatility.

Under the revised structure, the ₦1,175 per litre petrol price reflects a significant jump from the previous ₦995 per litre, while diesel has surged sharply from its prior ₦1,430 per litre level, underlining the continued upward trend in domestic fuel pricing.

The increases coincide with a sharp rise in international crude oil benchmarks as of 1:00 pm WAT on Monday: BRENT CRUDE: $102.8 (+10.91%) and WTI CRUDE: $101.0 (+11.08%) due to the Middle East energy crisis.

The development is having a ripple effect across Nigeria’s downstream petroleum market, as depot operators and fuel marketers adjust supply costs in response to the revised prices announced by the country’s largest refining facility.

Oil prices soared 30 per cent on Monday on fears about supplies from the Middle East, as the war continued into a second week with no sign of letting up. Since the beginning of the war, WTI is up more than 75 per cent and Brent more than 60 per cent.