Marketers Projects Petrol Price Hike Amid Rising Crude Costs

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that petrol prices could rise soon if the global price of crude oil continues its upward trend.
National President of PENGASSAN, Festus Osifo, issued the projection during the association’s National Executive Council Meeting held on Thursday in Lagos. He highlighted that crude oil prices had climbed to $80 per barrel and warned that without improvements in Nigeria’s exchange rate, petrol prices would likely increase in the coming weeks.
Osifo attributed the current high petrol prices across the country to the weakened naira, despite the commencement of operations at domestic refineries. He explained that refining processes require multiple stages to produce high-quality Premium Motor Spirit (PMS) and dismissed the belief that local refining alone would drastically reduce pump prices.
“The old Port Harcourt refinery is operational, with significant progress at both the Kaduna and Port Harcourt facilities. Refineries globally engage in blending operations as part of standard refining practices,” Osifo noted.
He stressed that the cost of PMS is directly tied to the exchange rate, stating that a stronger naira could bring down petrol prices significantly. “If the exchange rate improves to below N1,000 per dollar, PMS could sell for N500 to N600 per litre,” he added.
Drawing comparisons with countries like Venezuela and Zimbabwe, Osifo pointed out the crucial role of currency stability in the oil and gas sector, where transactions are primarily conducted in US dollars. He clarified that even local refining does not imply a reduction below production costs, noting that proper cost margins must be maintained.
In a related statement, Osifo criticised Nigeria’s 2025 national budget of ₦49 trillion (approximately $30 billion), calling it inadequate for a nation of over 230 million people. He compared it to South Africa’s budget of over $120 billion, despite its smaller population of about 60 million.
He urged the government to explore Nigeria’s abundant natural and mineral resources more effectively to reduce reliance on loans and expand revenue generation.