Many filling stations across the Federal Capital Territory have continued to increase the pump price of Premium Motor Spirit, popularly known as petrol.
The latest adjustment followed an N85 increase in Dangote Petroleum Refinery’s gantry price, from N1,265 to N1,350 per litre, amid a surge in global crude oil prices.
This represents a 6.7 per cent increase and takes the refinery’s wholesale price above the current petrol landing cost of N1,311 per litre.
Checks by the News Agency of Nigeria on Sunday in Abuja showed that some filling stations had started adjusting their petrol prices upward, with motorists paying more for the product.
NAN observed that MRS retail outlets increased pump price from N1,350 to N1,395 per litre, while NIPCO retail outlets raised pump price from N1,350 to N1,430 per litre.
Mobil outlets also increased from N1,350 to N1,400 per litre.
A petrol attendant at an MRS filling station, who pleaded anonymity, said the price of fuel could increase further from tomorrow.
“We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.
Bent crude, the benchmark for Nigeria’s oil, was trading at about 107.92 dollars per barrel, and now to 108.21 dollars per barrel.
The increase has intensified pressure on downstream operators and triggered further adjustments in petrol prices across the FCT.
Also Read: Motorists groan as petrol price rise in Abuja
The implication is that motorists could face higher prices at filling stations in the coming weeks, higher cost of transportation and more financial burden on households.
“We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.
Dr Aliyu Ilias, an economist and development expert, said the latest increase in petrol prices could worsen inflation and deepen economic hardship for Nigerians.
Illias said the increase in petrol prices would likely translate into higher transportation and production costs, particularly for food and other essential commodities.
“I think there should be a way of absorbing these costs. If you do not absorb them, they will show up in our next inflation figures and economic analysis.
“The more prices increase, the more the cost of producing goods, especially food, will rise because everything is affected by transportation costs.
“This kind of change is not good for the economy at all, and people are going to face more hardship as a result,” he said.
Mr Owei Lakemfa, the former Secretary-General of the Organisation of African Trade Union Unity, said Nigeria must shield consumers from the impact of global oil price fluctuations.
Lakemfa said that the country should strengthen its economic planning and regulatory framework. He argued that Nigeria, which produces crude oil and has a large population, should put measures in place to protect its citizens from sudden increases in the price of petroleum products.
“The ongoing geopolitical tensions involving major oil-producing and consuming countries, as well as attacks in the Middle East, are factors that can affect global oil prices and should not come as a surprise to policymakers.
“We have known that the conflict between the U.S. and Iran will affect the shipping of oil products. We know that.
“In basic economics, when you are close to the source of your products, you have advantages. If we produce oil in Nigeria, refining in Nigeria cannot be the same as importing fuel. It cannot be,” he said.
He said that importing refined petroleum products comes with additional costs, including labour, insurance, shipping and other expenses incurred in the exporting country.
He called for stronger planning and regulation, adding that domestic fuel prices should not automatically rise whenever there is a geopolitical crisis abroad.
“It cannot just be that any time Iran attacks the U.S. or there is another conflict, the price goes up. We have to plan. And that is the only sense of governance,” he said.
He also expressed concerns about the structure of Nigeria’s downstream petroleum market, noting that it had elements of oligopoly and monopoly that could make it easier for major players to influence prices.
According to him, regulatory agencies must prevent any individual or group from having excessive influence over the price of a critical commodity such as petrol.
“You cannot allow any individual or group to dictate to the country. That is why you have regulatory agencies. The government is there to protect the state and the people,” he said.
Lakemfa urged the Federal Government and consumer protection agencies to take stronger action against arbitrary price increases.
He said that changes in global oil prices should not automatically translate into equivalent increases in domestic petrol prices.
He further said that effective regulation and forward planning were necessary to protect consumers and prevent further economic hardship.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike said marketers reviewed their pump prices following a series of adjustments by Dangote refinery.
Ukadike said the frequent price changes were creating uncertainty for both marketers and consumers, as the cost of replacing products could change.
