Nigerians are facing sharp increases in petrol prices as marketers raise pump prices well above the rise in international crude oil costs.
On Tuesday, petrol stations across the country increased the price of fuel from an average of N750 per litre to N850 per litre, citing a rise in crude oil prices from $64 to $68 per barrel on Monday. While the crude oil price rose by 6.2 percent, local retail prices surged by 14.3 percent, suggesting that oil marketers more than doubled the increase relative to the input cost.
The rise in crude prices also led to a 14.3 percent increase in the gantry price of petrol at the Dangote Refinery, which moved from N699 per litre to N799 per litre. Following this adjustment, retail outlets in Abuja, Lagos, and other parts of the country implemented further price hikes.
NNPC retail stations increased pump prices from N815 to N835 per litre, while some independent marketers applied steeper increases. AYM Sharfa, for example, raised prices from N815 to N900 per litre.
Chief Chinedu Ukadike, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), defended the hikes, attributing them to the increase in crude oil prices. “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 said.
On why marketers raised prices despite having older stock, Ukadike explained, “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. The marketers have to find a way to see how they can continue to be in business.”
The disproportionate increases have drawn public criticism, with Nigerians questioning the ethics of oil marketers who appear to be exploiting price adjustments to boost profits amid already rising living costs.
