Fuel Prices Set to Rise as Depots Increase Loading Costs
Nigerian consumers should prepare for a potential increase in petrol prices, as major depots nationwide have raised their loading costs. This development is largely attributed to the recent surge in global crude oil prices, with Brent crude reaching $79.76 per barrel on Sunday.
Depot Price Adjustments
- Petrol (PMS):
- Swift Depot increased its loading price from ₦907 to ₦950 per litre.
- Wosbab Depot raised prices from ₦909 to ₦950 per litre.
- Sahara Depot adjusted from ₦910 to ₦950 per litre.
- Shellplux increased from ₦908 to ₦960 per litre.
- Nipco Depot went from ₦912 to ₦950 per litre.
- Matrix Warri Depot rose from ₦925 to ₦945 per litre.
- Diesel (AGO):
- Stockgap Depot increased its price from ₦1,080 to ₦1,150 per litre.
- Ibeto Depot raised prices from ₦1,050 to ₦1,150 per litre.
- Sahara Depot adjusted from ₦1,045 to ₦1,150 per litre.
- Nipco Depot went from ₦1,120 to ₦1,150 per litre.
- Optima Depot increased from ₦1,048 to ₦1,120 per litre.
These adjustments represent an approximate 7-10% increase for petrol and a 5-10% rise for diesel, varying by depot and location.
Implications for Consumers
The hike in depot loading costs is expected to translate into higher pump prices for consumers across Nigeria. Previously, data from the Major Energy Marketers Association of Nigeria (MEMAN) indicated that the landing cost of petrol was ₦887.51 per litre in December 2024. With the recent rise in crude oil prices, landing costs are anticipated to increase further, leading to higher retail prices.
Market Dynamics
In December, the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery announced reductions in depot petrol prices, fostering competition among filling stations and resulting in lower prices for consumers. However, the current upward trend in global oil prices has reversed this situation, prompting depots to raise their loading costs accordingly.
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Expert Insights
Oil and gas expert Olatide Jeremiah, CEO of petroleumprice.ng, noted that the increase in crude oil prices directly impacts the cost of refined products. He stated, “As of Friday, when Brent crude neared $80, prices selectively increased in some depots in Lagos, and on Monday, prices might be jacked up by importers because a large chunk of oil marketers import petroleum products, and Brent crude is a major determining factor in the refining process.”
Conclusion
Consumers are advised to anticipate adjustments in fuel prices at filling stations nationwide. Stakeholders urge the government to reassess monetary policies and explore measures to mitigate the impact of rising fuel costs on the populace.
