Regulator links recent petrol price hikes to global oil market pressures and tensions in the Middle East…..
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said that the recent fluctuations in fuel pump prices across the country are a natural outcome of market forces operating under Nigeria’s deregulated petroleum sector.
Speaking in Abuja on Sunday, the authority’s spokesperson, George Ene-Ita, explained that the changes in pump prices reflect the realities of a fully deregulated downstream market where prices are determined by supply and demand rather than direct government control.
He made the clarification during an interview with the News Agency of Nigeria (NAN), while responding to concerns over the recent increase in petrol prices linked to geopolitical tensions in the Middle East.
According to Ene-Ita, Nigeria’s downstream petroleum sector has been operating under a fully deregulated framework since the beginning of the administration of Bola Ahmed Tinubu.
He noted that in such a market environment, variations in pump prices are expected as marketers adjust their prices based on changes in international crude oil prices, supply conditions, and other economic factors.
“Nigeria has been operating a fully deregulated downstream petroleum regime since the inception of the current administration. Therefore, pump price vagaries are purely a result of market dynamics,” Ene-Ita said.
Fuel prices rise amid global tensions
Petrol prices in Nigeria have risen in recent days following escalating tensions in the Middle East involving Iran, Israel, and the United States.
Earlier this month, the Nigerian National Petroleum Company Limited (NNPCL) adjusted the pump price of Premium Motor Spirit (PMS) at its retail outlets in Abuja to N960 per litre, up from N875 per litre.
The increase followed a sharp rise in global crude oil prices triggered by geopolitical tensions and concerns about potential disruptions to oil supply in the region.
Similarly, the Dangote Petroleum Refinery also raised its gantry price by N100, pushing the ex-depot rate to N874 per litre, compared with the previous price of N774 per litre.
Industry stakeholders have warned that the upward adjustment could have broader implications for the Nigerian economy.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, cautioned that the increase in petrol prices from the refinery could trigger ripple effects across multiple sectors, particularly transportation and logistics.
Global oil markets under pressure
The price surge is largely tied to developments in the global energy market, where escalating hostilities in the Middle East have heightened fears of supply disruptions.
Recent data from commodities markets show that Brent crude futures jumped by about 20 percent last week, while West Texas Intermediate (WTI) crude climbed roughly 25 percent during the same period.
The spike has been linked to attacks on oil infrastructure across the region.
Over the weekend, Israeli forces reportedly struck oil storage facilities in Tehran, marking the first known attack on Iran’s oil infrastructure since hostilities escalated between the two sides.
Iran has also responded by targeting energy facilities in several Middle Eastern and Gulf countries where U.S. forces sometimes operate.
In one incident, Saudi Arabia’s state oil giant was forced to suspend operations at a major refinery in the country’s Eastern Province after a drone strike disrupted facilities capable of processing more than 500,000 barrels of crude oil per day.
Energy facilities in Ras Laffan Industrial City and Mesaieed Industrial City in Qatar were also affected, forcing authorities to temporarily halt downstream production following a series of strikes.
The attacks have impacted energy infrastructure across several Gulf countries, including the United Arab Emirates, Kuwait, Qatar, Bahrain, and Oman.
However, Iran has indicated that it will avoid targeting neighbouring countries unless attacks against its territory originate from their soil.
Analysts say the ongoing geopolitical tensions could continue to influence global oil prices, with possible knock-on effects for fuel prices in markets like Nigeria that now operate under a deregulated pricing system.
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