PENGASSAN Predicts Petrol Price Increase Amid Rising Crude Oil Costs

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned of a potential hike in the price of Premium Motor Spirit (PMS) due to rising crude oil prices and the depreciation of the naira.

Speaking at PENGASSAN’s National Executive Council meeting in Lagos, the association’s National President, Festus Osifo, highlighted that crude oil prices had surged to $80 per barrel, raising concerns about the impact on fuel costs.

“The crude price rose to $80 per barrel today. Without improvements in the exchange rate, PMS prices will increase in the coming weeks,” Osifo said, attributing the high cost of petrol in Nigeria to the weak naira.

He noted that if the exchange rate improves to below N1,000 to the dollar, petrol prices could drop to between N500 and N600 per litre. However, he emphasized that the oil and gas industry operates in U.S. dollars, making currency stability crucial to managing costs.

Osifo also debunked the assumption that local refining would automatically result in cheaper petrol prices, explaining that refineries still factor in production costs and margins. He added that while domestic refineries like the Port Harcourt refinery are operational, they are yet to reach full capacity.

In a related development, Osifo criticized Nigeria’s 2025 budget of ₦49 trillion ($30 billion) as insufficient for addressing the needs of over 230 million citizens. He compared it unfavorably to South Africa’s $120 billion budget for a population of about 60 million.

“The budget of $30 billion is abysmally low for a country like Nigeria. To move forward, Nigeria must fully harness its abundant natural and mineral resources to expand its revenue base and reduce dependence on loans,” Osifo said.

PENGASSAN reiterated the need for better economic management to stabilize the exchange rate and reduce the burden on Nigerians.