Nigerian consumers are facing sharp increases in petrol prices at filling stations, with retail rates climbing significantly faster than the rise in global crude oil costs.
On Tuesday, petrol stations across the country raised pump prices from an average of ₦750 per liter to ₦850 per liter. Marketers attributed the increase to rising crude oil prices in the international market, which climbed from an average of $64 per barrel to $68 on Monday.
However, while crude oil prices rose by 6.2 percent, local retail prices increased by 14.3 percent—more than double the rate of the underlying input cost increase.
The rise in crude prices prompted the Dangote Refinery to increase its gantry price for petrol from ₦699 per liter to ₦799 per liter, representing the same 14.3 percent increase. Following this adjustment, retail outlets in Abuja, Lagos, and other regions raised their prices accordingly.
NNPC Retail stations increased prices from ₦815 to ₦835 per liter, while some independent marketers implemented larger hikes. AYM Sharfa, for example, raised its pump price from ₦815 to ₦900 per liter.
Chief Chinedu Ukadike, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), defended the increases, pointing to rising crude oil costs.
“Crude oil price has increased. The refiners have also increased their price. Once your buying source increases, you will increase. Dangote has increased by over 110 Naira,” he explained.
When asked why marketers raised prices while still selling existing stock purchased at lower rates, Ukadike said: “The crude oil price didn’t just go up today. That is the nature of the business. Even if we sell our old stock, we can’t buy a new one at the old price. The margin is high. The buying rate and margin is high. Marketers have to find a way to continue to be in business.”
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