- Petrol pump prices is expected to increase again as global crude oil prices surge above $70 per barrel, marketers warn
- There is expectation of N1,000 per litre which is N200 more than the current rates offered at filling stations
- Industry experts have provided insight on the impact of crude oil prices and fuel pricing in Nigeria
Legit.ng journalist Dave Ibemere has extensive experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerians may face another N200 per litre increase in petrol prices following a rise in global crude oil prices.
The potential hike comes just days after marketers raised the average pump price from about N750 per litre to N850 per litre last week.
The increase was triggered by Dangote Petroleum Refinery’s adjustment of its retail price from N739 to N839 per litre, prompting several filling stations nationwide to raise their pump prices.
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Photo: Bloomberg
Source: Getty Images
Industry experts on expected petrol price changes
Oil marketers said the recent climb in international crude prices above the $70 per barrel mark has pushed up the landing cost of imported petrol.
Data obtained from the Major Energies Marketers Association of Nigeria (MEMAN) showed that as of Friday, January 23, the 30-day average prices for imported product stood at N728.88 per litre for petrol when crude oil price average N65.
Industry operators warned that unless global oil prices drop and the naira strengthens significantly, retail prices could be adjusted upward to reflect the new cost realities.
According to Chinedu Ukadike the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria a sustained rise in crude oil prices would inevitably affect petrol pump prices across the country.
He explained that crude oil prices and exchange rates remain the primary determinants of domestic fuel prices, noting that changes in either could push petrol prices higher,Punch reports.
Read also
Petrol import costs drop below Dangote refinery price as gantry rate hits N799
Ukadike warned that petrol could sell for up to N1,000 per litre, particularly in locations far from refineries and fuel depots, if crude prices continue to rise.
“As independent marketers, we don’t want prices to increase. Any rise will be driven by international developments and crude oil prices.
“If crude prices fall, petroleum product prices will also come down. That is how the market works.”
Photo: Nurphoto
Source: Getty Images
Also, Olatide Jeremiah, CEO of PetroleumPrice.ng, told Legit.ng that crude oil significantly impacts depot and retail prices. He noted:
“Crude oil accounts for 80% of the production components of refined products anywhere in the world.”
Dangote refinery confirms capacity to meet Nigeria’s energy demand
Earlier, Legit.ng reported that the Dangote Petroleum Refinery has reaffirmed its capacity to meet Nigeria’s fuel demand, stating that it can supply 75 million litres of petrol daily against an estimated national consumption of 50 million litres.
In a statement, the refinery said it could also supply 25 million litres of diesel daily compared with an estimated demand of 14 million litres, as well as 20 million litres of aviation fuel, far exceeding domestic consumption levels.
According to the refinery, excess supply capacity would enhance market stability, reduce reliance on imports and strengthen Nigeria’s downstream supply chain.
Source: Legit.ng