Nigerian oil marketers are preparing to increase petroleum product prices following a surge in international crude prices above $100 per barrel.
Middle East Tensions Push Oil Prices Higher
The rise has been linked to worsening tensions in the Middle East and fears that further disruptions could affect global oil supplies.
The OPEC Basket, which includes Nigeria’s Bonny Light, climbed above $100 per barrel, while Brent crude rose to $100.60. Murban crude also increased to $118.30 per barrel.
Joseph Ehimen, Lagos State Chairman of PETROAN, said marketers would adjust their prices after their next purchases.
“Certainly, we are going to adjust the pump prices after our next purchases. It will be based on market forces, factoring in all cost elements, including logistics to filling stations,” he said.
Economist Clifford Egbomeade warned that higher crude prices could increase the cost of diesel, transportation, freight and other energy-dependent operations.
“The immediate effect on Nigeria is a cost shock. Higher crude prices will raise the cost of diesel, transport, freight and other energy-intensive inputs, putting pressure on business margins and household incomes,” he said.
He also warned that prolonged disruption could push up the cost of goods and services.
