Oil marketers in Nigeria may increase the pump prices of petroleum products following a sharp rise in international crude oil prices, with benchmark prices climbing above $100 per barrel.
The increase is linked to growing tensions in the Middle East and fears that the crisis could disrupt global oil supplies.
The OPEC Basket, which includes Nigeria’s Bonny Light, rose above $100 per barrel from more than $95, representing an increase of about 5.2 per cent. Brent crude also climbed to $100.60 per barrel from $97, while Murban crude rose to $118.30 per barrel.
The development has raised concerns that Nigerians could face higher fuel prices, transport fares and the cost of goods and services if the increase in crude prices continues.
Joseph Ehimen, Lagos State Chairman of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said marketers would review their pump prices after their next purchases.
He explained that the new prices would be determined by market forces and would take into account costs such as transportation and logistics to filling stations.
Meanwhile, the Organisation of Petroleum Exporting Countries (OPEC) said Nigeria may not fully benefit from the rise in crude prices because of its low oil production.
According to the latest OPEC Monthly Oil Market Report, Nigeria’s crude oil production, excluding condensates, fell to 1.44 million barrels per day in July 2026 from 1.51 million barrels per day in June.
The July figure was also below Nigeria’s implied production target of 1.50 million barrels per day.
The lower production means that although higher crude prices could increase government revenue and foreign exchange earnings, Nigeria may not be able to maximise the benefit because of the limited volume of crude available for export.
Economist Clifford Egbomeade warned that the oil-price increase could create a cost shock across the economy.
He said higher crude prices could increase the cost of diesel, transportation, freight and other energy-intensive inputs, putting additional pressure on businesses and households.
Egbomeade said Nigeria could benefit from higher oil earnings if the additional revenue is properly managed and crude production is sustained.
He, however, advised the Federal Government against returning to a broad petrol subsidy, arguing that the government should instead use increased oil revenue to improve foreign exchange liquidity, reduce wasteful spending and ensure that local refineries have adequate access to crude.
Former 11 Plc Managing Director, Adetunji Oyebanji, also called for measures that would reduce the impact of higher fuel costs on Nigerians.
He suggested that instead of bringing back fuel subsidies, government should support public transportation, including the Bus Rapid Transit system, while reducing the cost of essential services such as healthcare and education.
President of the Association of Small Business Owners of Nigeria, Femi Egbesola, described the development as a mixed blessing.
He said higher crude prices could increase government revenue and foreign exchange inflows but could also raise transportation, logistics, production and operating costs for businesses.
He warned that small and medium-sized businesses could be particularly affected because many already face high energy and financing costs.
Egbesola said Nigerians could see higher transport fares, food distribution costs and manufacturing expenses if the oil-price surge persists.
He urged the government to use any additional oil revenue to improve domestic fuel supply, accelerate local refining, reduce unnecessary taxes and levies on businesses, invest in infrastructure and energy, and provide targeted support for vulnerable households and small businesses.
Despite the increase in international crude prices, petrol prices in Lagos remained largely between N1,266 and N1,300 per litre during the period covered by the report.
Dangote Refinery sold at N1,266 per litre, while MRS and NIPCO were listed at N1,267 and N1,280 respectively.
Other depots recorded varying increases, with Bono recording the biggest rise of N30 to N1,300 per litre.
Analysts said the limited movement in domestic petrol prices suggests that the latest crude-price increase has not yet been fully reflected in the Nigerian market. However, a prolonged rise could eventually increase refinery, freight and other supply-chain costs.
The National President of the Oil and Gas Services Providers Association of Nigeria, Mazi Colman Obasi, called on the Federal Government to act before rising international crude prices trigger another major increase in the cost of living.
He advocated stronger domestic refining, adequate crude supply to Nigerian refineries and improved distribution infrastructure.
Managing Director of Highcap Securities, David Adonri, also warned that higher crude prices could worsen inflation.
He said the government should use any oil windfall to finance productive infrastructure and other long-term investments that could create jobs, reduce poverty and cushion the effect of rising prices on Nigerians.
READ ALSO:
- TRANSPORT WORKERS ENDORSE GOV. LAWAL FOR SECOND TERM FOR IMPROVING INFRASTRUCTURE IN ZAMFARA
- Crude oil tops $100, fuel prices may rise in Nigeria
- 2027: Obi Promises To Accept Defeat If Election Is Credible
- Moniepoint CEO to Lead Inaugural Cohort of Askya AI Growth Platform
- Tinubu Tells Bishops: Don’t Turn Pulpits Into Platforms for Incitement Ahead of 2027
