Petrol depot prices surge past N1,300 per litre as pump price hikes loom
By Aboki Forex —
Nigerian motorists face another round of petrol price increases as the ex-depot price of Premium Motor Spirit (PMS) crosses N1,300 per litre. The latest move comes less than a week after depot owners raised prices, adding fresh pressure on filling stations, households and businesses.
Data from PetroleumpriceNG showed several depots have adjusted petrol prices to between N1,300 and N1,310 per litre, up from the previous range of N1,265 to N1,275 per litre. Matrix Warri, Calabar and Optima depots reportedly increased their prices to N1,300, N1,310 and N1,305 per litre respectively. The adjustments represent increases of between N25 and N35 per litre.
Why depot prices keep rising
The latest increase follows an earlier adjustment by depot owners after Dangote Refinery raised its gantry price to N1,265 per litre. Most depot operators then moved their prices into the N1,265 to N1,275 per litre range. Now, marketers are facing rising supply costs and are passing part of the burden down the distribution chain.
The development also comes against the backdrop of rising international crude oil prices, with crude approaching the $100-per-barrel mark. Higher global crude prices increase the cost of refined products and put additional pressure on domestic fuel prices, particularly where market conditions allow such changes to filter through the supply chain.
Impact on pump prices and consumers
For motorists, the increase could quickly translate into higher pump prices if filling stations adjust retail rates to reflect the latest depot costs. The impact is already visible at the retail level. Petrol was reportedly selling between N1,310 and N1,350 per litre at several filling stations in Abuja at the time of reporting.
A further increase in depot prices could push pump prices even higher in locations where transportation, logistics and other distribution costs add to the final price. Households and businesses already battling high transport and operating expenses are likely to feel more pain.
Marketers seek government intervention
The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have called for government intervention over the latest price increases. The groups have argued that addressing supply and distribution challenges is critical to reducing pressure on petrol prices.
For Nigerian consumers, the immediate concern is whether the latest depot increases trigger another round of pump price adjustments. If filling stations respond to higher ex-depot rates, motorists may soon pay more at the pump, with possible knock-on effects on transport fares, food prices and the wider cost of doing business.
Legit.ng earlier reported that Nigerian motorists may be in line for temporary relief as the landing cost of imported petrol fell below Dangote Refinery's current ex-gantry price. Improved naira stability is helping ease the cost of bringing refined petroleum products into Nigeria, although rising international crude prices could put fresh pressure on petrol prices in the coming days.