The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has linked the recent rise in Premium Motor Spirit (PMS) prices to the escalating cost of crude oil in the global market.

PETROAN noted that Brent crude oil, a global benchmark, currently trades at $80.85 per barrel, while WTI oil and the OPEC basket are priced at $78.82 and $81.72 per barrel, respectively.

In a statement issued by its president, Dr. Billy Gillis-Harry, PETROAN highlighted that under Section 205 of the Petroleum Industry Act (PIA), petrol prices are now regulated by market dynamics rather than government control.

This shift means that the Nigerian National Petroleum Corporation (NNPC) and the government no longer dictate fuel prices, leaving refiners and marketers to adjust their rates according to crude oil fluctuations.

This is coming after Dangote Petroleum Refinery confirmed an increase in the price of PMS to its customers.

Marketers, who are buying between 2 million – 4.99 million litres, will now purchase it at N955 per litre while 5 million litres and above will buy at N950 per litre.

Following the announcement, the retail price of petrol increased to between N1030 and N1,050 per litre.