Nigerians are facing another tough hit to their wallets as the price of petrol, also known as Premium Motor Spirit (PMS), has quietly surged across the country. Many filling stations, including those operated by the Nigerian National Petroleum Company Limited (NNPCL) and independent marketers, have hiked their pump prices, with some nearing the N1,000 per litre mark.
In Abuja, the Federal Capital Territory, NNPCL retail outlets adjusted their petrol price to N945 per litre on Monday. This is a significant jump of N35 from their previous price of N910. Independent marketers in Abuja went even higher, with prices hitting N955 per litre, a N60 increase from N895.
The ripple effect is widely felt in Lagos, where NNPCL stations are now selling petrol at N915 per litre, up from N870. Independent dealers in Lagos are charging anywhere from N915 to N950 per litre. Across Lagos, Ogun, and other parts of the South-West, prices are generally hovering between N915 and N950. Even partners of the Dangote refinery, like MRS, Heyden, and AP, are selling at N925 in Lagos and N935 in Ogun.
Filling station operators admit they are wary of the unstable market, stating they had to increase prices even on existing stock to account for the rising costs.
This latest wave of price adjustments comes just days after the Dangote Petroleum Refinery increased its own ex-depot price for petrol from N825 to N880 per litre, setting off an industry-wide chain reaction.
Further compounding the issue, major supply hubs in Lagos, including Wosbab, Pinnacle, and NIPCO, have also dramatically increased their ex-depot prices (the price at which they sell to filling stations) to between N920 and N925 per litre as of June 23. This jump is attributed to rising upstream costs and international crude oil prices. Dangote depot itself closed sales at N905 per litre, while NIPCO Lagos saw a notable N25 per litre increase.
On the global stage, escalating tensions between the United States and Iran are shaking the oil market. Recent reports of airstrikes and retaliatory missile attacks have fueled fears of supply disruptions. While Brent crude and WTI crude prices unexpectedly dropped slightly on Monday, analysts have been projecting that crude oil prices could soon cross the $80 per barrel mark, which would further push up petrol prices in Nigeria.
Olatide Jeremiah, CEO of PetroleumPrice.ng, voiced concerns about the rapid increases. “Tensions are heightened at the Depot while marketers are engaging in speculative pricing, hereby cashing out,” he stated.
He pointed out that while global crude oil prices have only increased by about 3%, importers and depot owners in Nigeria have hiked their prices by over 10%. “Sooner, these prices will be passed down to the pump,” he warned, indicating that consumers should brace for even higher costs.
This recurring upward adjustment in fuel prices is expected to intensify financial strain on everyday Nigerians, leading to higher transportation costs and increased pressure on household budgets already struggling with high living expenses.
