Prices of Premium Motor Spirit (PMS), otherwise known as petrol is beginning to rise across petrol stations nationwide amid a sharp surge in global crude oil prices above the $80 per barrel threshold.
The development comes following a report by the Petroleumprice.ng, that the Dangote Petroleum Refinery & Petrochemicals had increased the ex-depot price of petrol from ₦774 to ₦874 per litre, representing a ₦100 hike.
An economist, Paul Alaje, on Monday, warned that petrol prices in Nigeria could climb to about ₦1,000 per litre if the ongoing conflict involving the United States, Israel, and Iran is not effectively managed.
Alaje, who is the Chief Economist at SPM Professionals, appeared on Channels Television’s Politics Today, against the backdrop of escalating geopolitical tensions in the Middle East.
According to him, increases in crude oil prices typically translate into higher costs for refined petroleum products such as petrol, diesel, and aviation fuel, with broad implications for businesses and households.
Consequently, the report noted that petrol loading, alleged to have been previously halted on Sunday midnight, has now resumed at the new price, while Proforma Invoice (PFI) issuance has reopened strictly based on the revised rate.
Meanwhile, approved marketers around the refinery have begun adjusting their selling prices in response to the hike.
Market checks indicated that several marketers are now offering PMS at ₦900 per litre, while a few depots have fixed prices slightly lower at ₦895 per litre.
The rapid adjustment underscores the direct impact of rising crude oil prices on Nigeria’s downstream petroleum market, with further price realignments expected as operators reassess replacement costs.
READ ALSO: PMS May Rise To ₦1,000 If US-Iran War Isn’t Properly Managed — Paul Alaje
“While crude oil goes up, we all need to check the impact on our economy. The first thing you see is high inflation, because as crude oil goes up, the cost of PMS, diesel, and Jet-A1 will also follow.
“As that is going on, about nine per cent has already attracted more cost for PMS in Nigeria, and by the end of April, we project that if the war is not properly managed, it might get to ₦1,000 plus for PMS in Nigeria.
“If PMS is ₦1,000, you can imagine what diesel will be; you can imagine what flight tickets will be. It will affect the poor, the middle class, and, of course, the rich,” the economist said.
Dangote Refinery has yet to issue an official statement on the latest increase in price as of the time of filing this report.
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