Abdulsalam Adigun,
Depots have hiked the pump prices of Premium Motor Spirit (petrol) after the escalating tension in the Middle East jerked up the prices of crude oil. The rise was also linked to a strike by tanker drivers along the Lekki-Epe corridor in Lagos.
This came as the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.
According to Petroleumprice.ng, the Dangote Petroleum Refinery’s petrol price rose from N825 to N840 on Monday. Rainoil’s price surged by N50, from N850 to N900 per litre. It was also reported that Fynefield and Mainland jerked their ex-depot prices to N930 and N920, adding N51 and N63 respectively.
As of Monday, Sigmund was selling at N920 per litre; Matrix Warri’s price was N910; NIPCO jumped to N895 from N827 last week, while Aiteo sold petrol at the rate of N840, as shown by Petroleumprice.com.
The rise in ex-depot prices is an indication that a litre of fuel might cost close to N1,000 per litre in the coming days. The Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, told our correspondent that the increase could be a result of the rise in crude prices.
However, a depot operator said the price changes could be due to the refusal of tanker drivers to load petrol on Monday because of the N12,500 E-Call Up fee.
The operator, who pleaded not to be mentioned due to a lack of authorisation to speak on the matter, told our correspondent that the issue of price was secondary at the moment, as there was no fuel loading on Monday.
He stated that unless the government settled the crisis arising from the E-Call Up system, Nigeria might witness another fuel scarcity soon.
The PUNCH reports that Nigeria’s major crude grades—Bonny Light, Brass River, and Qua Iboe—rose to $77 per barrel on Friday and sustained the rise till Monday, following Israel’s military strikes on Iran, heightening fears of a wider Middle East conflict.
According to data from Oilprice.com as of Monday, Bonny Light stood at $78.62 per barrel, while Brass River and Qua Iboe closed at approximately $77.
The rally marked a sharp jump from the average of $65 per barrel recorded just days earlier. The new price levels exceed the Federal Government’s 2025 budget benchmark of $75 per barrel by about $2, potentially offering short-term fiscal relief.
However, energy analysts warn that higher crude prices could trigger an increase in local fuel prices, as refiners face rising costs for crude, the primary feedstock for petrol and diesel production.
Speaking on the controversy between tanker drivers and the Lagos State Government, MEMAN’s Isong asked the government to reach an agreement with stakeholders to avoid the shortage of fuel.
Isong agreed with the tanker drivers that the N12,500 being demanded by the government would trigger another fuel price hike, saying Nigerians were already going through a lot.