Retail petrol prices rise in Abuja, Nigeria
Filling stations in Abuja, Nigeria’s capital, have raised retail petrol prices after Dangote Petroleum Refinery increased its wholesale ex-depot price by 85 naira — from 1,265 to 1,350 naira per litre. Premium Times Nigeria reports, citing the News Agency of Nigeria.
New prices at filling stations
According to the agency, the MRS chain raised its petrol price from 1,350 to 1,395 naira per litre. At NIPCO stations, the price per litre increased from 1,350 to 1,430 naira, while at Mobil stations it rose from 1,350 to 1,400 naira.
An MRS filling station employee who wished to remain unnamed said that the station was selling its available stock at 1,395 naira per litre, but the price could rise after a new delivery arrives. The increase in the wholesale price at the Dangote refinery amounts to 6.7% and exceeds the current estimated cost of delivered petrol cited in the report — 1,311 naira per litre.
The report also notes that the price of Brent crude, Nigeria’s benchmark grade, rose from about $107.92 to $108.21 per barrel. This increased pressure on fuel market operators, the publication says.
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Assessments of possible consequences
Economist and development expert Aliyu Ilias said that the new rise in fuel prices could intensify inflation and economic hardship for the population. According to him, higher petrol prices may affect transport costs and production costs, including those of food and other essential goods.
Former Secretary-General of the Organization of African Trade Union Unity Owei Lakemfa called on Nigeria to protect consumers from fluctuations in global oil prices through more effective economic planning and regulation. He also expressed concern about the structure of the domestic petroleum products market and said that regulators must prevent individual players from having excessive influence over pricing.
Marketers’ position
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, said that marketers had reviewed pump prices following several adjustments by the Dangote refinery. According to him, frequent changes create uncertainty for both sellers and consumers, as the purchase cost of new fuel deliveries may change.
