In the next few days, Premium Motor Spirit's pump price may reach roughly ₦1,000 per litre due to a significant increase in the price of crude oil worldwide.

According to The Punch, fuel marketers warned on Saturday that a spike in oil prices above $70 per barrel could result in further price rises for both domestically and internationally refined petroleum products.

The price of petrol was recently increased by the Dangote Petroleum Refinery from 739 to 839 per litre.

Additionally, on Thursday, global oil prices reached their highest point in five months, surpassing $70 per barrel.

Fears of prospective supply interruptions and growing tensions over potential US action against Iran, a key producer within the Organization of Petroleum Exporting Countries, caused crude to rise around 3%.

According to Reuters, US West Texas Intermediate increased $2.21, or 3.5%, to $65.42 per barrel, while Brent crude futures increased $2.31, or 3.4%, to close at $70.71 per barrel. Brent settled at $70.89 and WTI at $65.80 a barrel by Friday afternoon, according to data from Oilprice.com, indicating additional gains.

Any increase in Brent crude, the benchmark for oil prices worldwide, usually affects the price of refined petroleum products.

US President Donald Trump is considering a range of measures against Iran, including targeted strikes on security forces and key officials aimed at encouraging domestic unrest, according to multiple sources.

However, Israeli and Arab officials cautioned that air power alone would be insufficient to overthrow Tehran’s clerical leadership.

“The immediate (market) concern is the collateral damage done if Iran takes a swing at its neighbours or, possibly even more tellingly, it closes the Strait of Hormuz to the 20 million barrels per day of oil that navigates it,” PVM analyst John Evans was quoted as saying.

Speaking, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, warned that sustained high crude oil prices could push up the pump price of petrol.

He explained that crude oil prices and exchange rates for condensate are key factors in determining fuel costs, noting that any movement in either directly affects domestic petroleum product prices.

Ukadike added that petrol could rise to as much as ₦1,000 per litre if the surge in crude prices persists, particularly in areas located far from fuel depots.

“As an independent marketer, we don’t normally want the price of petroleum products to go up; any increase you see now will be because of this international manoeuvre and everything happening in the international community in terms of crude oil price.

“The crude surge will definitely affect our local market. The price of petroleum products will come down if the crude price goes down, that’s the common principle of the market,” Ukadike said, admitting that the price of petrol may rise to N1,000, especially “in some other places that are not closer to the refinery or depots. That’s the speculation”.

Ukadike noted that rising petrol prices are placing significant pressure on marketers, weakening their ability to purchase fuel in large volumes.

“Crude oil is important in refining petroleum products; once it goes up, the prices of petroleum products will also go up. We are gearing towards that. The only problem is that it is also giving us pressure in terms of our purchasing power because too much naira is now pursuing a few litres of petroleum products,” he added.

Fuel sales have slowed since the December holiday season, according to Ukadike, who also noted that many consumers are now reducing their consumption due to rising costs.

In contrast to the low costs throughout the holiday season, the market is currently slowing down. The IPMAN spokesperson said, "People were filling their tanks back then, but because of the price increase, people are now becoming conservative."

Petrol prices are expected to rise, according to another dealer, a prominent oil marketer and PMS importer, who cautioned that if global crude oil prices keep rising, the landing cost might surpass ₦900 per litre.

According to the pricing information we are receiving from our suppliers, there is already pressure on funds to import the commodity (petrol). The trader, who talked in confidence because he was not authorised to discuss the subject, said, "The simple reason is the surge in crude oil prices, caused by the tension in the Middle East."

Therefore, N1,000 per litre (for petrol) is within the range. When the price of petroleum was about $75 per barrel and the exchange rate was slightly higher than it is now, it was sold at that price. The petrol importer said, "That is just the dynamics of the market.