There are indications that Nigerians will experience a slight increase in the price of Premium Motor Spirit (petrol) as oil marketers raise the ex-depot price to between N950 and N970.
With the increase in ex-depot price, Nigerians may soon be forced to pay between N975 and N1,200 per litre, depending on their location.
The recent price hike has been attributed to the surge in the price of crude oil, which has risen from $70 per barrel to over $80 per barrel. Nigeria’s benchmark, Brent crude, hit over $81.77 per barrel today, driven by expectations of expanded US sanctions on Russian oil producers. These sanctions are expected to disrupt crude supplies to major importers like China and India.
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The US action is aimed at curbing the revenue that Moscow uses to fund its war in Ukraine. The US expects this decision to severely impact Russian oil exports to India and China, prompting the two top buyers to source more oil from the Middle East, Africa, and the Americas, which could push oil prices higher.
The NNPCL and other marketers have recently raised their ex-depot price. The NNPCL, which previously sold at N899 per litre to marketers, has increased the price, forcing the depots to raise theirs as well.
Depots including Swift, Wosbab, Sahara, and Shellplux have adjusted their prices to between N950 and N960 per litre, compared to last week’s range of N907 to N912 per litre.
The increase has led the Independent Petroleum Marketers Association of Nigeria (IPMAN) to seek a partnership with Dangote Petroleum Refinery, which is selling at N909 per litre, for the purchase of at least two million litres of petrol.
The national president of the association, Mr Abubakar Maigandi Garima, stated that members are eager to sign a bulk-purchase agreement with Dangote Refinery.
He argued that members could no longer rely on depot owners for products when they could purchase directly from the refinery, given that the minimum quantity for purchasing from Dangote Refinery is two million litres at N909 per litre.
However, TheLeadng has learnt that Dangote Refinery has also decided to increase its ex-depot price due to a scarcity of crude oil supplied to the Lagos-based facility.
Dangote Petroleum Refinery, Africa’s first privately owned oil refinery, reduced its ex-depot price to N899.50 per litre in December to help alleviate transport costs during the festive season. Demonstrating its commitment to Nigerians, it also partnered with MRS Oil to sell fuel at N935 per litre at all its stations across the country.
