The recent increase in the pump price of Premium Motor Spirit (PMS) has been attributed to prevailing global crude oil market dynamics rather than any deliberate or artificial action aimed at penalising Nigerian consumers.
This clarification was contained in an official statement on the current fuel price adjustment, signed by the Petroleum Products and Technology Association of Nigeria (PETROAN) National PRO, Dr Joseph Obele, which explained that fluctuations in international crude oil prices directly affect the landing cost of imported petroleum products into Nigeria.
According to the PETROAN, international crude oil prices rose sharply at the close of the latest trading session due to escalating geopolitical tensions and supply concerns. Brent crude was reported to be trading above 70 dollars per barrel, one of the highest levels recorded in recent months.
The surge was driven largely by heightened geopolitical risks, particularly in the Middle East, which have threatened supply stability and increased market volatility.
In the domestic market, the retail price of PMS has consequently risen, with average pump prices ranging between ₦835 and ₦880 per litre in major cities across the country. Recent adjustments at depots have also pushed gantry and retail prices upward in line with prevailing market fundamentals.
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PETROAN noted that higher fuel prices have far-reaching implications, particularly on transportation, logistics, and the cost of goods and services, thereby exerting additional inflationary pressure on the economy.
To mitigate the impact of rising fuel costs on Nigerians, several measures were proposed. These include giving urgent attention to the rehabilitation and full operation of the four government-owned refineries in Port Harcourt, Warri, and Kaduna; strengthening Nigeria’s strategic petroleum reserves to cushion future price shocks; and promoting foreign exchange stability to reduce the cost of fuel imports.
Other recommendations include encouraging healthy competition in the downstream petroleum sector and accelerating energy diversification efforts through the development of alternative energy sources to reduce dependence on petroleum products.
PETROAN stressed that proactive and coordinated policy responses are critical to cushioning the impact of fuel price increases on consumers and ensuring stability in fuel supply and pricing, warning that failure to act could result in increased hardship for Nigerians.
