By Onu Okorie
Nigerian National Petroleum Company Limited NNPCL has again increased the pump price of Premium Motor Spirit (PMS), popularly known as petrol, amid a sharp rise in global crude oil prices following the escalating conflict between the United States and Iran in the Middle East.
Checks on Tuesday showed that several NNPCL retail outlets in Abuja and its environs were selling petrol at prices ranging between N1,395 and N1,430 per litre, representing an increase of between N50 and N80 per litre.
The new prices were observed at NNPCL stations around Airport Junction, Gwarinpa, Kubwa Expressway, Wuse Zone 4 and other locations across the Federal Capital Territory.
The latest increase comes only days after MRS, backed by the Dangote Refinery, also raised its petrol price, adding to growing concerns over the impact of international oil market developments on fuel prices and the wider Nigerian economy.
The latest adjustment by NNPCL comes against the backdrop of a sharp escalation in hostilities involving the United States and Iran, which has heightened fears over the security of crude oil supplies from the Middle East.
International benchmark Brent crude rose to about $107 per barrel, while West Texas Intermediate (WTI) climbed to approximately $103 per barrel, as markets reacted to the worsening geopolitical tensions and concerns over potential disruptions to oil production and transportation in the region.
The situation has added fresh pressure to an already volatile Nigerian downstream petroleum market. With Nigeria heavily dependent on crude oil revenues and domestic fuel prices increasingly influenced by international market conditions, sustained increases in global crude prices could translate into further upward pressure on petrol prices.
The economic consequences are already being felt beyond filling stations, with higher transport and energy costs threatening to push up the prices of food, manufactured goods and other essential commodities and services.
For millions of Nigerians already grappling with elevated living costs, the latest petrol price increase could further squeeze household incomes and raise the cost of doing business.
Analysts warn that if the conflict in the Middle East intensifies and threatens major oil-producing and transit routes, global crude prices could remain elevated, potentially triggering another wave of increases across Nigeria’s economy.
The development has therefore renewed concerns about the vulnerability of Nigerian consumers to shocks in the international oil market, particularly as businesses and households continue to absorb the effects of higher energy and transportation costs.
