The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to N990 per litre in the Federal Capital Territory (FCT) and N960 per litre in Lagos.
This price hike comes amid ongoing market fluctuations, even as global crude oil prices experienced a slight decline earlier in the week.
Price Adjustments Across States
The recent price adjustments at NNPCL outlets reflect changes in the deregulated petroleum sector. Other filling stations have also adjusted their prices:
• Airport Junction, Abuja: Increased from N965 to N990.
• Life Camp, Abuja: Listed products at N970 per litre but was out of stock.
• Lagos-Ibadan Expressway Stations: Prices ranged from N960 to N1,000, with MRS, Heyden, and Ardova selling at N970 per litre.
In other parts of the country:
• Akwa Ibom: Prices reportedly surged to N1,100 per litre.
• Major Marketers: Stations like TotalEnergies listed petrol at N985 per litre, while independent marketers such as Petrocam and Shema sold at N1,000 and N1,030, respectively.
Factors Driving the Increase
The hike in petrol prices is attributed to several factors:
1. Market Deregulation: NNPCL and other marketers adjust prices in response to market forces, aligning with Nigeria’s deregulation policies.
2. Global Oil Dynamics: Recent fluctuations in crude oil prices have influenced production and supply costs. As of Tuesday:
• Brent Crude Oil Futures: Marginally dropped to $79.98 per barrel on Monday, before rising slightly to $80.05.
• WTI Crude Futures: Declined to $76.46 per barrel.
3. Dangote Refinery Operations: The commencement of loading operations at the $20 billion refinery has impacted supply chains. The refinery raised its ex-depot price from N899/litre to N955/litre, affecting retail pump prices nationwide.
Expert Insights
Oil and gas expert, Olatide Jeremiah, explained that the current price hikes are a natural outcome of deregulation. “The adjustments reflect market forces at play. Deregulation remains the best long-term solution to address fuel scarcity and unpredictable price increases,” he said.
Jeremiah added that these changes are temporary, partly linked to global events, including sanctions on Russia under the previous US administration.
Consumer Reactions and Observations
Across the country, consumers have expressed frustration with the frequent price adjustments. A tricycle rider in Lagos lamented:
“We thought the prices would reduce at first, but they’ve increased again. This makes it harder for us to cope.”
Queues at NNPC filling stations reportedly disappeared after the new price adjustments were announced, with buyers opting to fill their tanks before further increases.
Key Highlights
• Major Cities Impacted: FCT, Lagos, and Ogun States report increases ranging from N960 to N1,030 per litre.
• Independent Marketers: Prices have surpassed N1,000 per litre in many areas.
• Crude Oil Influence: Ongoing fluctuations in global oil markets continue to impact local pricing.
As consumers adjust to these new prices, experts predict further changes in the petroleum market as global and domestic factors evolve.
