Israel-Iran crisis: PENGASSAN raises alarm over petrol prices surge

The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has openly criticised oil marketers for taking advantage of Nigerians through inflated fuel prices, insisting that the pump price of petrol should realistically be between ₦700 and ₦750 per litre.

This follows recent sharp increases in the price of Premium Motor Spirit (PMS) at depots nationwide, triggered by rising global crude oil prices amid escalating tensions in the Middle East. The situation worsened as tanker drivers embarked on a protest over a ₦12,500 E-Call-Up fee at the Lekki-Epe corridor in Lagos, halting fuel loading activities.

According to Petroleumprice.ng, Dangote Petroleum Refinery raised its petrol price from ₦825 to ₦840 per litre, while Rainoil hiked its price from ₦850 to ₦900. Fynefield and Mainland also pushed up their depot prices to ₦930 and ₦920 respectively. Sigmund now sells at ₦920, Matrix Warri at ₦910, NIPCO increased from ₦827 to ₦895, and Aiteo adjusted its price to ₦840.

This steady climb in depot prices suggests that petrol could soon approach ₦1,000 per litre across the country.

Clement Isong, Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), blamed the spike on the rise in crude prices. However, a depot operator who spoke anonymously said the immediate crisis was worsened by Monday’s halt in petrol loading caused by the tanker drivers’ protest.

“If this E-Call-Up issue isn’t quickly resolved, it could trigger another round of fuel scarcity,” the operator warned.

Meanwhile, Nigeria’s crude grades such as Bonny Light, Brass River, and Qua Iboe have climbed to $78.62 per barrel, surpassing the Federal Government’s 2025 budget benchmark of $75. While this offers temporary fiscal relief, it also threatens domestic fuel price stability.

Energy experts have warned that higher crude prices inevitably raise the cost of refined products like petrol and diesel, due to increased feedstock costs.

On the E-Call-Up levy crisis, MEMAN’s Isong urged the Lagos State Government to swiftly engage stakeholders and avert further disruptions, stressing that Nigerians are already grappling with economic hardship.

Speaking at a press conference in Abuja, PENGASSAN President Festus Osifo condemned the persistent shutdowns of Nigeria’s refineries, attributing it to political interference rather than technical issues. Despite over $2.5 billion spent on refinery rehabilitation, facilities like the Port Harcourt Refinery remain largely inactive and have been recently shut for a 30-day maintenance programme.

Osifo maintained that the Nigerian National Petroleum Company Limited (NNPCL) must review its refinery operations model and implement PENGASSAN’s long-standing recommendations, which the union has consistently presented for over 15 years.

He also decried the disparity between global crude prices and Nigeria’s petrol prices, noting that even though crude recently dropped from around $80 to between $62 and $65 per barrel, petrol is still being sold at ₦875 to ₦905 per litre across the country.

Osifo accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of failing to checkmate exploitative practices by marketers under the deregulated market framework. He stressed that “crude price and exchange rate account for nearly 80% of the final retail price” and with current benchmarks, petrol should retail between ₦700 and ₦750 per litre.

He called on the regulatory agency to begin publishing transparent pricing templates to prevent arbitrary price hikes by marketers.

On another note, Osifo raised concerns over the deteriorating security situation in Nigeria’s oil-producing areas, especially along the waterways, which has seen multinational oil companies divesting despite new incentives introduced by the Federal Government.