As escalating tensions between Iran and Israel unsettle global oil markets, fuel marketers have called on the Federal Government to take urgent steps to prevent a surge in petrol and diesel prices that could make them unaffordable for most Nigerians.
Despite a temporary dip in crude oil prices below $70 per barrel on Tuesday, the recent spike driven by Middle East conflict and airstrikes on Iranian nuclear sites had already begun to influence local fuel costs, including supplies from the Dangote Refinery. Analysts warn that, without intervention, petrol prices could climb beyond ₦1,000 per litre.
The marketers urged President Bola Tinubu’s administration to implement measures that protect consumers, particularly low-income earners. They advocated for a strengthened naira-for-crude initiative, suggesting that the government should peg domestic crude prices to levels that enable affordable local refining.
Speaking with The PUNCH, Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said: “Fuel could sell for far above ₦1,000 per litre if the Iran conflict worsens. The government needs to allocate more crude to the 650,000 bpd Dangote Refinery and sell it at agreed domestic rates to keep prices low.”
Fashola stressed that discounted crude to local refiners would help shield Nigerians from inflationary pressures triggered by volatile international markets.
“This is the time to fully leverage the Dangote Refinery. The Federal Government must sit with Alhaji Aliko Dangote and agree on a sustainable price. If we continue to follow international benchmarks, most Nigerians won’t be able to afford petrol,” he added.
He also urged the government to ramp up crude oil production, increase supply to local refineries, and rehabilitate the country’s state-owned refining facilities to reduce reliance on imports.
“The new NNPC board must roll up its sleeves. Increased production and refinery revival are critical. With enough crude, we can meet local demand and earn from exports,” Fashola said.
On the price volatility affecting the market since January, Fashola explained that marketers have been forced to adjust due to rising depot and refinery prices.
An official at the Dangote Refinery, who spoke on condition of anonymity, acknowledged the impact of Nigeria’s low crude output but said the refinery was ready to support government efforts to expand the naira-for-crude arrangement.
“Dangote Refinery was established to ensure energy security for Nigeria and Africa. We are willing to work with the government to make this happen,” the source said.
While rising crude prices could boost Nigeria’s revenue and support the 2025 budget, experts caution that the ripple effect could worsen living conditions for ordinary Nigerians. The Crude Oil Refinery Owners Association of Nigeria had previously appealed to the government for a special exchange rate to support local refining and keep fuel prices in check.
