Nigerians may face another round of petrol price increases following a sustained rise in crude oil prices on the international market, coming just days after an upward adjustment in pump prices across the country.
The price of Nigeria’s Bonny Light crude climbed to 70.30 dollars per barrel from 64 dollars last week, representing about a 10 percent increase and the highest level recorded this year. Brent crude rose to 70.15 dollars per barrel from 66 dollars, while Murban crude increased to 68.01 dollars from 65.20 dollars per barrel.
Earlier in the week, petrol stations raised pump prices to an average of 850 naira per litre, up from about 750 naira, attributing the hike to rising crude oil prices. The Dangote Refinery and oil marketers explained that crude oil is the main determinant of input cost in fuel production.
However, while crude oil prices rose by about 6.2 percent, petrol retail prices jumped by over 14 percent, suggesting that local price increases outpaced the rise in input costs. The gantry price of petrol at the Dangote Refinery increased from 699 naira per litre to 799 naira per litre, prompting higher pump prices nationwide.
NNPC Retail outlets raised prices to 835 naira per litre from 815 naira, while independent marketers implemented steeper hikes, with some selling as high as 900 naira per litre.
Speaking on the development, the National Public Relations Officer of the Independent Marketers Association of Nigeria, Chief Chinedu Ukadike, attributed the increase to higher crude oil prices and rising refinery costs, noting that marketers must adjust prices to remain in business.
Meanwhile, market checks showed mixed reactions, as petrol prices remained largely unchanged on Thursday, while diesel prices rose at several depots.
Industry experts warned that higher crude oil prices would increase energy costs, transport fares, production expenses, and household spending, further intensifying inflationary pressures on the Nigerian economy.
