Petrol prices have increased at several filling stations across Abuja following an N85 hike in the gantry price of Premium Motor Spirit by the Dangote Petroleum Refinery.
The Punch reported that the refinery raised its wholesale price from N1,265 to N1,350 per litre, representing a 6.7 per cent increase, as global crude oil prices continue to rise.
The new rate is also above the current petrol landing cost of N1,311 per litre.
Brent crude, Nigeria’s benchmark, was trading at about $107.92 per barrel before rising to $108.21 per barrel.
The development has heightened concerns among downstream operators and motorists over further increases in petrol prices, transportation fares and household expenses.
Checks by the News Agency of Nigeria in Abuja on Sunday showed that some filling stations had already adjusted their pump prices.
MRS outlets increased their price from N1,350 to N1,395 per litre, while NIPCO outlets raised theirs to N1,430. Mobil stations also increased their pump price to N1,400 per litre.
A petrol attendant at an MRS filling station, who pleaded anonymity, said motorists should expect another increase as soon as the new stock arrives.
“We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.
An economist and development expert, Aliyu Ilias, warned that the increase could worsen inflation and further deepen economic hardship, particularly through higher transportation and production costs.
“I think there should be a way of absorbing these costs. If you do not absorb them, they will show up in our next inflation figures and economic analysis.
“The more prices increase, the more the cost of producing goods, especially food, will rise because everything is affected by transportation costs.
“This kind of change is not good for the economy at all, and people are going to face more hardship as a result,” he said.
The former Secretary-General of the Organisation of African Trade Union Unity, Owei Lakemfa, called for measures to protect consumers from the impact of fluctuations in global oil prices.
He said Nigeria needed stronger economic planning and regulation to prevent sudden increases in domestic petrol prices.
“The ongoing geopolitical tensions involving major oil-producing and consuming countries, as well as attacks in the Middle East, are factors that can affect global oil prices and should not come as a surprise to policymakers. We have known that the conflict between the U.S. and Iran will affect the shipping of oil products. We know that.
In basic economics, when you are close to the source of your products, you have advantages. If we produce oil in Nigeria, refining in Nigeria can not be the same as importing fuel. It can not be,” he said.
Lakemfa said imported refined petroleum products attract additional expenses, including labour, insurance and shipping costs incurred in the exporting country.
He urged the government to improve regulation and planning so that domestic fuel prices would not automatically respond to every geopolitical crisis.
“It can not just be that any time Iran attacks the US or there is another conflict, the price goes up. We have to plan. And that is the only sense of governance,” he said.
He also raised concerns about the structure of Nigeria’s downstream petroleum sector, saying elements of oligopoly and monopoly could give major players significant influence over prices.
According to him, regulators should ensure that no individual or group has excessive control over the price of petrol, a critical commodity.
“You can not allow any individual or group to dictate to the country. That is why you have regulatory agencies. The government is there to protect the state and the people,” he said.
Lakemfa further urged the Federal Government and consumer protection agencies to act against arbitrary price increases and ensure that changes in global crude prices do not automatically result in equivalent increases in domestic petrol prices.
Meanwhile, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers had reviewed their pump prices following successive adjustments by the Dangote refinery.
Ukadike said the frequent changes had created uncertainty for marketers and consumers because the cost of replacing products could change from one period to another.
Headline suggestion: Petrol prices rise in Abuja as Dangote raises rate
