Brent, the international benchmark for crude oil, surged to $84 per barrel on Wednesday, leading to speculations that Nigeria may experience another hike in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, in the coming weeks.

For over a month, crude oil prices hovered between $75 and $78 per barrel, but they reached their peak on Wednesday, following a trend of steady highs since the previous week.

Oil marketers have expressed concerns that the rise in crude oil prices, combined with fluctuations in exchange rates, could justify further increases in petrol prices.

The Major Oil Marketers Association of Nigeria noted that the international price of crude oil and exchange rates significantly contribute to over 80% of the cost build-up for PMS.

While some oil marketers have started importing petrol into Nigeria, the Nigerian National Petroleum Company Limited (NNPCL) remains the major importer, acting as the supplier of last resort.

Despite these developments, NNPCL maintains its stance on selling PMS at the market price, citing that the subsidy burden has been lifted from the Federal Government’s shoulders after the complete deregulation of Nigeria’s downstream oil sector in May 2023.

As such, the pump price of petrol may continue to be influenced by market dynamics, including crude oil prices and exchange rates.