OIL MARKETERS RAISE PETROL DEPOT PRICES AMID GLOBAL TENSIONS AND RISING CRUDE COSTS
Read Time:1 Minute, 22 Second
By Aishat Momoh. O.
Oil marketers in Nigeria have increased the depot prices of Premium Motor Spirit (PMS) in response to mounting global pressures, including escalating tensions in the Middle East and rising crude oil prices. Brent crude climbed to $77.88 per barrel while WTI traded at $74.67, triggering adjustments in depot pricing across the country.
This upward trend is also being driven by ongoing instability between Israel and Iran, which has disrupted global oil flows and introduced renewed risk premiums into international trading. Depot owners have reacted swiftly, with PMS and diesel prices already rising and projected to continue climbing if the geopolitical tensions persist.
In addition to global factors, domestic challenges are compounding the situation. The Dangote Refinery, facing crude supply shortfalls locally, has resorted to importing over 17 million barrels of oil. This has significantly increased foreign exchange and logistics costs, which are now being reflected in depot prices.
Nigeria’s foreign exchange volatility, particularly with the naira trading at ₦1,605 to the dollar on the black market, is further contributing to higher import-linked costs for fuel. Distribution expenses, including transportation and handling, are also adding pressure—especially with increasing demand at loading jetties in Lagos and Delta.
Independent marketers are adjusting their supply chains to manage high downstream logistics costs, particularly for northern-bound fuel deliveries. As these factors converge, the ripple effects are already moving into the retail segment, raising concerns about potential increases in pump prices nationwide.
Industry experts warn that unless the Middle East conflict de-escalates and the naira stabilises, Nigerians should brace for sustained upward pressure on fuel prices in the coming weeks.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0