Key Points
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Private depots have raised petrol prices to N900 per litre due to rising crude oil costs.
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Petrol prices at filling stations are expected to increase, with some retail outlets already charging N930 to N950 per litre.
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The Major Energies Association of Nigeria reported a N88 per litre increase in the cost of imported petrol.
Private oil depots in Nigeria have increased the price of petrol (Premium Motor Spirit, or PMS) to N900 per litre.
This price hike happened over the weekend due to rising crude oil prices and other factors affecting the global market.
Oil marketers like Rainoil, Prudent, A.Y.M Shafa, and Mainland are now selling petrol at N900 per litre at their depots. As a result, petrol prices at filling stations across the country are likely to rise as well.
Why Petrol Prices Are Rising
The price of crude oil, which is used to make petrol, has increased recently. The price rose from $70 per barrel to $75 per barrel.
This rise in crude oil prices has led to higher costs for refineries, including the Dangote refinery, which processes 650,000 barrels of crude oil per day.
The refinery has to deal with these extra costs, which contribute to the price increase.
Impact on Petrol Prices at Stations
Due to the higher costs, petrol marketers are now paying more to buy petrol from depots. This means that prices at petrol stations will likely increase as well.
Some independent retail outlets are already selling petrol for between N930 and N950 per litre, reflecting the higher prices from the depots.
Challenges and Future Outlook
The Major Energies Association of Nigeria (MEMAN) reported that the landing cost of imported petrol has gone up by N88 per litre.
This increase has raised concerns that petrol prices could continue to rise. MEMAN also emphasized that as the market stabilizes, challenges will arise, but proper regulations and transparency can help Nigeria fully benefit from a deregulated market.
This could lead to more investment, greater efficiency, and a more competitive market.
