Fresh petrol price hike looms as depot rates hit N1,290 

By Udeme Akpan, Energy Editor

Nigerians may soon pay more for  Premium Motor Spirit (PMS), also known as petrol, as depot prices across major petroleum hubs have climbed sharply to as high as N1,290 per litre, amid a renewed surge in international crude oil prices.

The development threatens to worsen the financial burden on households and businesses, with marketers expected to review their pump prices if the latest increase in depot costs persists.

The latest mid-day depot price report for yesterday showed that petrol prices rose significantly across Lagos, Calabar, Port Harcourt and Warri.

In Calabar, petrol prices reached N1,290/litre at Mainland and Soroman depots, up N87/litre from N1,203/litre. 

Matrix also raised its price by N86/litre to N1,290, while Sobaz increased its price by N80/litre to N1,285.

In Lagos, the Dangote Refinery increased its petrol price by N66/litre, from N1,200 to N1,266/litre.

Pinnacle also moved from N1,201 to N1,266, while African Terminal and Integrated increased their prices by N67/litre to N1,268.

The increases were more pronounced at some independent depots, with Masters raising its price by N75/litre to N1,285, while Liquid Bulk, Sigmund and T.S.L increased theirs by N63/litre to N1,278.

The latest development comes as international oil prices have strengthened sharply amid renewed tensions in the Middle East.

Brent crude futures settled at about $90.49 per barrel on Tuesday, after rising 2.71 per cent following renewed military exchanges between the United States and Iran.

The development is particularly significant for Nigeria because higher international crude prices could increase the replacement cost of imported petrol and influence the pricing decisions of domestic refiners and marketers.

Industry watchers said the combination of higher crude oil prices, rising depot costs, logistics expenses and distribution margins could put further pressure on filling-station prices.

The latest development is coming barely days after concerns emerged over the widening divergence between international crude prices and domestic petrol depot prices. 

Checks by Vanguard showed that MRS that takes direct delivery from the Dangote Refinery sold the product at N1, 310 per litre while many others sold at higher prices ranging between N1,350 and N1, 400 per litre.

However, the expected further rise in retail prices would raise the cost of transportation and logistics, while businesses that depend on petrol and diesel for power generation could face higher operating expenses.

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