Petrol Price Seen Hitting N1,000 Per Litre Over Crude Surge

 

Petrol prices could climb to N1,000 per litre as global crude oil benchmarks push above $70 per barrel, deepening cost pressures in Nigeria’s deregulated downstream market and raising fresh inflation concerns.

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Crude’s move past $70 represents roughly a 10 per cent jump from last week’s $64 level, with the rally largely driven by heightened geopolitical tensions rather than a sharp rise in global demand. The shift in international prices is already feeding into local pump costs, as import parity pricing and refinery adjustments filter through the supply chain.

The Dangote Refinery has raised its gantry price from N699 to N799 per litre, a 14.3 per cent increase, signalling higher replacement costs for marketers. Retail outlets have begun adjusting accordingly, with pump prices in some locations rising to around N850 per litre from about N750 previously.

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The Nigerian National Petroleum Company (NNPC) has also revised its retail price upward to about N835 per litre from N815, reinforcing the upward trend across both private and state-linked supply channels.

Energy analysts warn that if crude prices remain firm or extend gains, the N1,000 per litre threshold could come into view in the near term, particularly if exchange rate pressures persist. They note that fuel remains a key input across logistics, manufacturing and food distribution, meaning higher pump prices typically transmit quickly into transportation fares and consumer goods.

The development risks adding to existing inflationary strains, as businesses adjust pricing to reflect higher energy and haulage costs, potentially squeezing household purchasing power and slowing consumer demand across key sectors of the economy.