Oil: Desperate Situations Call for Desperate Measures.
By Tahir Ibrahim Tahir Talban Bauchi.
Believe it or not, petrol is climbing to a staggering N1,900 per litre in Port Harcourt as at today, the 10th of October, 2026. Oil prices are reaching alarming rates worldwide and most european countries are emptying their oil reserves just to stabilise prices as shortages in supply coupled with high crude prices are driving energy costs to unaffordable heights.
Germany has emptied its oil reserves to its oil supply market just to manage the situation.
To further paint a grimmer picture of the reality of the situation, the US, despite its frosty relationship with Russia over the Ukranian war, is bending over backwards to buy diesel from Russia. The whole world is taking desperate measures. EU member states have agreed on international price caps and releasing strategic oil reserves.
Countries like Spain, Italy, Germany, France, Poland and Austria are working on a block-wide excess profit tax on oil and energy companies. Some countries like the Netherlands have cut transit prices in half to ease the burden of transportation costs.
The Vanguard energy editor, Udeme Akpan has reported that NIPCO is dispensing petrol at N1,900 per litre in Port Harcourt as petrol depot prices surged across Lagos, Warri, Calabar and Port Harcourt.
Brent crude has climbed up to $104.50 per barrel and depot prices across African Terminal, Ascon, Eterna, Gulf Treasure, Ibachem and Ibeto have been raised to N1,900 per litre from N1,750 per litre. Lagos prices are apparently lower with Masters pegging it at N1,350 per litre while Matrix has it at N1,360 per litre.
In Calabar, Matrix has it at N1,370 and in Warri, Matrix and others have it at N1,360 per litre. NNPC Ltd. sold at N1,360 per litre while MRS sold at N1,338 per litre. Independent marketers are charging between N1,368 to N1,400 per litre according to the Vanguard editor.
The price differences highlight the divergent pricing trends across the supply chain with depot prices rising in several locations, even though some filling stations have continued to sell below the rates charged by independent marketers.
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Prices of products are not solely dictated by rises in crude oil prices as transportation and other factors are also considered, according to Udeme Akpan.
The Federal Government’s move to sell at a pegged N1,350 per litre for the next 30 days at the first instance is aimed at stabilising the price of petrol so that it does not escalate any further.
OPEC’s basket price for crude is $111.72 per barrel and continues to rise. The rate at which crude prices are rising indicates a continuous trend that doesn’t seem to abate. This is further highlighted by the efforts countries around the world are putting in place to cushion the effects of high crude prices to its citizenry.
The FG has therefore envisaged that prices would continue to surge as some states have already been buying at N1,500 per litre in the last week or two. The depot prices in Port Harcourt which is reported to be N1,900 per litre is staggering and points to tougher times ahead.
The hope of Nigerians were falsely raised by opposition figures who do not have a definite plan for the return of subsidy. They have floated prices as low as N600 per litre without realising that it does not even cover the landing cost of petrol.
The FG can be as deceitful as the opposition and announce a subsidy that could reduce petrol price to N1,000 per litre or less. After the elections it reverts to status quo. This is exactly what the opposition is going to do.
They have confessed that it will be returned at a later date. But the truth and the reality for the FG is that it cannot afford to be deceitful, in the way the opposition is. With prices threatening to rise to N1,900 or even more, the resources for a subsidy that would take off N1,300 per litre and sell at N600 per litre are humongous.
We do not have them and if we did, it would be squandered in a matter of months. Can we be able to borrow just to subsidise fuel consumption? We cannot as creditors would not listen to us. We can turn to forward sales of crude for a few months and we would be back to the rock bottom we have arisen from.
So govt’s discount at N1,350 per litre for the next 30 days is to prevent chaos from sneaking in. Crude oil prices are surging, the world is scrambling for answers and there just aren’t many available.
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