The pump price of Premium Motor Spirit could climb to about ₦1,000 per litre in the coming days following a sharp rise in global crude oil prices.

Fuel marketers said Saturday that crude prices jumping above $70 per barrel may lead to another round of increases in the cost of both imported and locally refined petroleum products, according to The Punch.

This comes shortly after the Dangote Petroleum Refinery raised its petrol price from ₦739 to ₦839 per litre.

Global oil prices also surged past $70 per barrel on Thursday — their highest level in five months.

Crude gained about three per cent amid fears of potential supply disruptions, as tensions grow over possible US action against Iran, a major producer within the Organisation of Petroleum Exporting Countries.

Reuters reported that Brent crude futures climbed $2.31, or 3.4 per cent, to close at $70.71 per barrel, while US West Texas Intermediate rose $2.21, or 3.5 per cent, to $65.42 per barrel. By Friday afternoon, data from Oilprice.com showed further gains, with Brent settling at $70.89 and WTI at $65.80 per barrel.

Brent crude serves as the global benchmark for oil prices, and any increase typically influences the cost of refined petroleum products worldwide.

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.

Ukadike said fuel sales have slowed compared to the December festive season, noting that many consumers are now cutting back on consumption as a result of higher prices.

“The market is becoming slow now, unlike in the festive season when the prices were low. People were filling their tanks then, but now, people are becoming conservative because of the price increase,” the IPMAN spokesman stated.

Another dealer, a leading oil marketer and PMS importer, confirmed that petrol prices are likely to increase, warning that the landing cost could exceed ₦900 per litre if global crude oil prices continue their upward trend.

“There is already pressure on funds to import the product (petrol) now, based on the pricing info we are getting from our suppliers. The simple reason is the surge in crude oil prices, caused by the tension in the Middle East,” the dealer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

“So N1,000/litre (for petrol) is not far from the range. It was sold around that price before, when the price of crude hovered around $75/barrel, and the exchange rate was a bit higher than what we have now. That is purely the market dynamics,” the petrol importer stated.