Premium Motor Spirit, also known as petrol, has increased in price to between N1,050 and N1,150 per litre, depending on the area of purchase, following a cost increase by the Dangote Petroleum Refinery and other depot owners.
Dealers acknowledged that PMS prices would continue to grow because crude oil, a main component in fuel manufacture, has been rising recently.
Festus Osifo, National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, had hinted that petrol prices will soon rise if the cost of crude oil continued to rise.
“The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo stated in Lagos.
On Friday, there was an upward review in the price of petrol produced by the Dangote Petrochemical Refinery.
The $20 billion facility increased its PMS at its loading gantry from N899 to N955 per litre.
According to an email statement addressed to consumers that one of our correspondents got, the refinery’s refined products will now be priced at the increased cost.
It was stated that marketers purchasing between two million and 4.99 million litres would now pay N955 per litre, while those purchasing five million litres or more would pay N950.
The amount is an increase of N55.5, or 6.17 percent, from the N899.50/litre given as a holiday discount for Nigerians last December.
This adjustment applies to any stock balances that have yet to be lifted by the specified time, and pending stock as of the effective time will also be repriced at the current rates.
According to the announcement, the new pricing system went into effect at 5:30 p.m. on Friday.
The notice, entitled ‘Communication on PMS Price Review,’ said, “Dear respected customer, I hope this email finds you well.
“Kindly be advised that effective from 5:30 pm today (Friday), an upward adjustment has been implemented on the gantry price of Premium Motor Spirit. Quantity Previous Price (NGN/Litre): 2 million-9.99 million—N899.50; 10 million litres & above—N895.
“Quantity New Price (NGN/Litre): 2 million–4.99 million–N955; 5 million litres & above–N950.
“Please note that all stock balances yet to be lifted as of the above-stated time are to be repriced at the new reviewed prices. We shall communicate with customers on their revised volumes based on the reviewed prices in due course.”
The price hike had a considerable impact on the downstream petroleum sector, particularly private depots and retail marketplaces.
Despite having old goods, private depots upped their loading rates to N970 in Lagos and N1,000 in Calabar.
A review of petrol price changes at loading depots following the announcement of the new price revealed that the Sahara depot raised its loading price by N20 to N970/litre from N950/litre on Thursday.
Pinnacle Depot raised its price to N970 from N921, while Wosbab Depot raised it to N965 from N940 per litre of petrol sold on Thursday.
NIPCO raised their loading costs by N30, to N980 from N950 on Thursday.
Rainoil, a private depot, has also upped its loading rates from N950 to N970. Alkanes, a private depot in Calabar, has ordered shops to pay N1,000 per litre to receive supplies.
Zone 4 and Mainland depots increased loading charges to N1,005/litre from N985, which was sold on Thursday.
Oil marketers affiliated with the Independent Petroleum Marketers Association of Nigeria predicted a significant increase in the retail price of petrol, claiming it might reach N1,100/litre in Lagos and adjacent states.
IPMAN further stated that fuel customers in the Federal Capital Territory may pay N1,150 for a litre.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, stated that the product would now sell for more than N1,000 per litre, particularly in rural areas across the country.
He emphasised that the new adjustment was the result of the recent global increase in crude oil prices.
Ukadike said, “Yes, Dangote has increased its price to N955. This is only because of the increase in Brent crude. Once it increases, the domestic production cost will also increase.
“Nigerians will likely pay over N1,150 at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980.
“This change is immediate because crude oil prices, too, are immediate. The refinery told us it has taken effect today, which means prices have increased already. Deregulation in this sector means price will be controlled by forces of demand and supply.
“So, if the force of supply says Brent crude has increased, it means domestic costs will also change. It is no longer funny now. Even marketers are affected by this up-and-down dwindling of prices. It affects our business.”
According to the Petroleum Products Retail Outlet Owners Association of Nigeria, retailers cannot acquire a litre of petrol and sell it for N1,000 per litre, with a margin greater than N45.
According to PETROAN National President Billy Gillis-Harry, the Dangote PMS excludes costs imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which will be included in the margin added by retailers.
Though Gillis-Harry said he could not confirm the exact price of petrol at filling stations, he noted that it would be higher than N1,000/litre.
According to him, PETROAN members would still sell at N935/litre due to the agreement they have with MRS Oil, pending when the agreement changes.
