Nigerian Petrol Prices Hit Record High Amid Global Oil Price Surge

The pump price of Premium Motor Spirit (PMS), also known as petrol, has surged to N1,400 per litre in Nigeria, sparking concerns about the economic hardship it will bring. This increase is largely attributed to deregulation and global oil prices.

According to Prof. Dayo Ayoade, an energy law expert at the University of Lagos, the Petroleum Industry Act (PIA) limits government intervention in fuel pricing. He added that challenges surrounding the Federal Government's naira-for-crude arrangement have reduced the volume of crude available for domestic refining.

Oil and gas analyst Abdullahi Shehu suggested that local refineries should receive crude oil in naira at subsidised rates, which would help reduce the cost of petrol and cushion its impact on consumers. Economist Dr. Marcel Okeke warned that the continued rise in petrol prices will worsen the country's cost of living crisis.

The increase comes after global crude oil prices surged, with Brent crude rising above $100 per barrel. This has prompted higher ex-depot and pump prices across Nigeria, pushing retail petrol prices to between N1,260 and N1,400 per litre in several parts of the country.