Expect petrol pump price hike, oil marketers tell Nigerans

Oil marketers have asked Nigerians to expect an increase in the pump price of premium motor spirit (PMS), also known as petrol, due to rising crude oil prices.

Recently, the cost of Brent, the global benchmark for crude, reached $81 per barrel, triggering a spike in the cost of loading petroleum products.

Marketers, who spoke to TheCable, said the ex-depot petrol price has also increased from N907 per litre on Friday to N950 on Monday — representing an increase of N43 or 4.74 percent.

The development comes three weeks after Nigerian National Petroleum Company (NNPC) Limited reduced its ex-depot price of petrol to N899 per litre in Lagos.

Prior to this, the Dangote refinery had reduced its ex-depot price to N899 per litre — down from N970 as at November 24, 2024.

Speaking to TheCable on Tuesday, Billy Gillis-Harry, president of the Petroleum Retail Outlet Owners Association of Nigeria Nigeria (PETROAN), said the price of petrol is determined by the cost of production, hence a pump price hike is inevitable.

“Global crude oil price will always have an impact on the production cost. And once production cost increases, it will certainly have an impact on the PMS, the quantity of PMS,” Gillis-Harry said.

“The crude oil that is being given to the Nigerian refinery in naira is predicated on the US dollar equivalent.

“However, I have said we should produce crude oil strictly for local consumption. So right now, the crude oil that is being operated by Dangote, by any operation that is here in Nigeria, is predicated on the government.

“So there is no way this shift will not impact on that local production. So it doesn’t really matter whether we are producing the PMS.

“The only thing that is happening with the production cost is the removal of logistic charges, importation costs, insurance, freight, all those charges are no longer there.

“That is what we are benefiting from, the local production. And also, local production has guaranteed our energy security. Because now, for the first time in December, nobody will struggle to buy PMS and oil.”

‘NIGERIA NOT EXEMPTED FROM GLOBAL OIL PRICE HIKE’

On his part, Ukadike Chinedu, publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said Nigeria is not excepted from the global oil price fluctuations.

Chinedu said Nigeria does not have any influence in whatever happens in the international oil market.

“Once it (price) increases, Nigeria’s crude prices will also increase and if it decreases, it is also the same. So Nigeria is not exempted and must operate in the best practice of the international market.

“With Brent price moving from $72 per barrel is now going to $82-$83 per barrel. Definitely it will also increase the price of local production and that is why ex-depots are adjusting their prices.”

Chinedu said with the development, Nigerians “should definitely expect a gradual increase in the petrol pump price because the price of production has increased”.