The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have provided insights into the recent spike in fuel prices across the country. According to the associations, the ongoing conflict between the United States and Iran, along with rising costs from suppliers, are the primary factors influencing the latest price hike.

In less than two weeks, fuel pump prices have surged from a range of N1,210 to N1,275 per litre to between N1,310 and N1,345 per litre. Abubakar Maigandi, the national president of IPMAN, emphasized that the geopolitical tensions are significantly impacting global oil prices, which in turn affect local pricing in Nigeria. "The fuel will sometimes go up and down due to the conflict in Iran and the United States," Maigandi stated.

Billy Gillis-Harry, president of PETROAN, echoed Maigandi's sentiments, adding that the costs at which retailers acquire petroleum products directly influence their selling prices. He pointed out that even if crude oil prices decrease, the prices at which retailers purchase petroleum products can remain high. "If we buy at N1,500 per litre, we must still try to make a minimal markup to cover costs such as finance, services, logistics, and overhead," Gillis-Harry explained.

The leaders clarified that retail outlets are not responsible for the price increases; rather, they are compelled to sell at prices that reflect their purchasing costs from suppliers. Gillis-Harry remarked, "It is not the doing of the retail outlets. Petroleum members are only going to be selling exactly how they buy. Our prices are always realistic because we are following a process that gives the Nigerian market or the Nigerian person the opportunity to be better served by petroleum."

The current situation highlights the intricate relationship between global events and local economies, particularly in the oil sector. As tensions abroad continue to escalate, Nigerian consumers may face further fluctuations in fuel prices, underscoring the vulnerability of the market to international developments.