Why Petrol Price May Rise to N1,000 Per Litre Soon – Marketers Explain

Why Petrol Price May Rise to N1,000 Per Litre Soon – Marketers Explain

Petrol marketers have raised fresh concerns that the pump price of Premium Motor Spirit (PMS) may soon surge to as high as N1,000 per litre across Nigeria, citing mounting economic pressures within the downstream oil sector.

According to industry operators, the biggest driver of the looming price hike is the continued depreciation of the naira against the US dollar. Since Nigeria still relies heavily on imported fuel, marketers said the landing cost of petrol, which is largely dollar-denominated, has risen sharply, making current pump prices unsustainable.

Marketers also pointed to the full deregulation of the downstream petroleum sector following the removal of fuel subsidy. With government no longer fixing prices, petrol costs are now determined strictly by market forces, including exchange rates, global crude oil prices, shipping, and distribution expenses.

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The increase in global crude oil prices has further worsened the situation. As crude prices rise in the international market, the cost of refined petroleum products climbs, leading to higher import and wholesale prices for petrol in Nigeria.

In addition, marketers identified high logistics and transportation costs as a major challenge. Poor road networks, rising diesel prices, security risks, and long haulage distances have significantly increased the cost of moving fuel from depots to retail outlets, especially in remote areas.

While local refining is expected to boost supply, marketers warned that domestic refining alone may not immediately prevent price increases. They explained that challenges such as crude supply pricing, forex access, and operational costs could limit the immediate impact of local refineries on pump prices.

Industry stakeholders cautioned that unless the exchange rate stabilises, logistics costs reduce, and supply chains improve, Nigerians may soon experience petrol prices approaching N1,000 per litre, particularly in areas far from major depots.

Why Petrol Price May Rise to N1,000 Per Litre Soon – Marketers Explain