Nigerians may face another round of petrol price increases following a sustained rise in global crude oil prices, weeks after the last hike.
Following upward adjustments in the pump price of petrol three days ago, Nigerians may face another round of increases due to rising crude oil prices on the international market. The price of Nigeria’s Bonny Light crude rose to $70.30 per barrel from $64 per barrel last week, representing an increase of about 10 per cent and the highest level recorded this year. Similarly, Brent crude, used to benchmark other crude grades, rose to $70.15 per barrel from $66 per barrel, while Murban crude increased to $68.01 per barrel from $65.20 per barrel.
Earlier this week, petrol stations had marked up pump prices to an average of N850 per litre, up by 14.3 per cent from N750, attributing the increase to the rise in crude oil prices. The Dangote Refinery and oil marketers also cited global crude price hikes, explaining that crude oil is the main determinant of input costs. However, while crude oil prices increased by 6.2 per cent, local retail prices rose by 14.3 per cent, indicating that local oil companies more than doubled the rate of increase relative to their main input cost.
The rise in crude prices led to a 14.3 per cent increase in the gantry price of petrol at the Dangote Refinery, which rose from N699 per litre to N799 per litre. Following this adjustment, petrol retail outlets in Abuja, Lagos, and other parts of the country also raised pump prices. NNPC retail outlets increased the price to N835 per litre from N815, while other marketers implemented steeper hikes; for instance, AYM Shafa raised its pump price from N815 per litre to N900.