Fuel prices likely to remain stable despite global tensions – Analyst

By Firdaus Jibril

Fuel prices in Nigeria are expected to remain stable in the near term despite rising global oil prices and geopolitical tensions in the Middle East, an investment research analyst has said.

Speaking during an interview on ARISE News, Investment Research Analyst at PAC Research, Mmesoma Ogbonnaya, said the return of naira-denominated fuel sales by Dangote Petroleum Refinery has helped stabilise the domestic market.

She noted that while global tensions have pushed crude oil prices higher, diplomatic efforts could help ease market pressures over time.

According to Ogbonnaya, geopolitical conflicts, particularly in the Middle East, often create a risk premium in the global oil market, leading to temporary increases in crude oil prices.

She, however, warned that fluctuations in crude prices and supply continue to affect ordinary Nigerians by increasing transportation and fuel costs, thereby driving inflation and reducing household purchasing power.

On Nigeria’s crude oil production, Ogbonnaya said achieving production of three million barrels per day remains a long-term goal.

She said a more realistic target for next year is between 1.7 million and 1.8 million barrels per day, adding that production could rise to two million barrels per day if the country improves investment in the upstream sector, security and infrastructure.

The analyst also observed that rising crude oil prices and market uncertainty are encouraging businesses and individuals to invest more in renewable energy as an alternative source of power.

She added that the trend reflects growing efforts by consumers to reduce energy costs and lessen their dependence on fossil fuels amid global market volatility.