Hardship Deepens As Petrol Price Hits N1,430

Petrol prices have increased at several filling stations across the Federal Capital Territory (FCT), days after Dangote Petroleum Refinery raised its gantry price from N1,265 to N1,350 per litre.

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The latest N85 increase has pushed the refinery’s wholesale price above the current petrol landing cost of N1,311 per litre, adding fresh pressure to the downstream petroleum market.

Checks in Abuja on Sunday showed that several filling stations had already adjusted their pump prices, with motorists paying more to buy Premium Motor Spirit (PMS), commonly called petrol.

At MRS outlets, the pump price rose from N1,350 to N1,395 per litre. NIPCO also increased its price from N1,350 to N1,430, while Mobil outlets moved from N1,350 to N1,400 per litre.

The development has raised concerns that petrol prices could climb further in the coming days, especially if filling stations begin selling newly purchased stock at higher acquisition costs.

A petrol attendant at an MRS station said motorists should expect another adjustment once the station receives fresh supplies.

“We are still selling the old stock at N1,395 per litre. Once the new stock arrives, the price is expected to go up,” the attendant said.

The latest development comes as international crude oil prices continue to rise. Brent crude, the benchmark for Nigeria’s oil, was trading at about $108.21 per barrel, up from around $107.92.

Economist and development expert, Dr Aliyu Ilias, warned that another increase in petrol prices could put additional pressure on inflation and household finances.

According to him, the effect would not be limited to fuel purchases because higher petrol prices usually increase transportation and production costs.

“When the cost of moving goods and people rises, businesses will eventually pass part of that burden to consumers. Food and other essential commodities are likely to feel the impact,” Ilias said.

He added that failure to absorb some of the additional costs could be reflected in subsequent inflation figures and economic assessments.

Former Secretary-General of the Organisation of African Trade Union Unity (OATUU), Mr Owei Lakemfa, called for stronger measures to protect Nigerian consumers from sudden increases linked to international oil market developments.

Lakemfa argued that Nigeria’s status as a crude oil-producing country should give it an advantage over nations that depend heavily on imported refined petroleum products.

“Refining crude locally should provide benefits that importing finished petroleum products cannot offer,” he said.

He noted that imported fuel attracts additional expenses such as shipping, insurance and labour costs, making domestic refining strategically important to the Nigerian economy.

Lakemfa also said geopolitical tensions and conflicts involving major oil-producing and consuming countries could continue to affect crude oil prices, adding that policymakers should anticipate such developments rather than react after prices rise.

“Global crises will happen, but domestic fuel prices should not simply move upward every time there is a conflict abroad. Proper planning is essential,” he said.

He further raised concerns about the structure of Nigeria’s downstream petroleum sector, arguing that concentration among major market players could give some companies significant influence over prices.

According to him, regulators must ensure that no individual or group is allowed to exercise excessive control over the price of a commodity as important as petrol.

“The responsibility of regulatory agencies is to protect consumers and prevent excessive influence over essential commodities,” Lakemfa said.

He urged the Federal Government and consumer protection agencies to strengthen oversight of the downstream sector and prevent arbitrary price increases.

Meanwhile, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers had been adjusting their pump prices in response to successive changes in the Dangote refinery’s pricing.

Ukadike said the frequent price adjustments were creating uncertainty for both marketers and consumers because the cost of replacing existing stock could change shortly after a purchase.

The latest increase could therefore have wider consequences for Nigerians, particularly motorists and households already facing high transportation and living costs.