Despite Fall In Crude Price, Petrol Hits N1,212 Per Litre

Despite drop in price of crude in the global oil market, operators in Nigeria’s downstream sector have increased the prices of Premium Motor Spirit, PMS, also known as petrol, by an average of N1,212 per litre from N1,158 per litre, an increase of 4.7 per cent which has triggered fresh worries in the polity.

The price of Brent used in benchmarking other crudes dropped to $88.42 per barrel from $88.60 per barrel yesterday.

Also, the price of crude from the Organization of Petroleum Exporting Countries, OPEC, called the OPEC Basket, including Nigeria’s Bonny Light dropped to $90.28 per barrel from more than $94. Per barrel.

Checks by Vanguard indicated that MRS, NNPC and Ardova increased retail prices to N1,205 from N1,125 per litre yesterday.

Also, Mobil increased its retail price to N1,215 per litre from N1,209 per litre, while BOVAS increased to N1,217 per litre from N1,210 per litre.

12 depots increase prices —Report

Meanwhile, 12 petroleum products depots recorded the highest petrol prices across Lagos, Port Harcourt, Calabar and Warri as of mid-day yesterday, with prices reaching as high as N1,735 per litre.

The latest mid-day price report showed that the highest petrol prices were concentrated in Port Harcourt, where several depots quoted between N1,668 and N1,735 per litre, significantly above prevailing prices in Lagos.

The Prudent Depot in Port Harcourt recorded the highest petrol price at N1,735 per litre, followed by Zamson at N1,730, while Rain Oil and NEPAS quoted N1,730 and N1,732 per litre, respectively.

Other high-priced depots included GulfTreasure at N1,680; Duport N1,668; IbaChem  N1,668, Ibeto at N1,668; Integrated  N1,670; Menj N1,670; TMDK N1,670; and T.Time N1,668.

The report also showed that petrol prices in Lagos were generally lower, although several major depots increased their prices during the period.

In Lagos, MRS posted the highest current petrol price at N1,207 per litre, rising by N15 from N1,192.

Pinnacle followed at N1,203 per litre, representing a N17 increase from N1,186, while NIPCO also quoted N1,203, up N13 from N1,190.

BONO and Pivot increased their prices to N1,203 per litre from N1,195, while African Terminal and Integrated moved from N1,195 to N1,202 per litre.

Dangote Refinery quoted PMS at N1,200 per litre, although no previous price was provided in the report for comparison.

The Port Harcourt market, however, recorded some price declines in Automotive Gas Oil (AGO), also known as diesel with Pivot reporting the largest drop, from N1,750 to N1,670 per litre.

The price disparity between the coastal markets highlights the continuing variation in depot prices across Nigeria, with logistics, location, supply availability and market conditions influencing the cost of products.

The latest figures also indicate that while petrol prices in Lagos remained largely within the N1,200–N1,207 per litre range, prices in Port Harcourt, particularly at some depots, were more than N500 per litre higher.

The development could have implications for the downstream market, particularly for marketers and retailers sourcing products from higher-priced depots, as depot costs remain a major determinant of pump prices.

Dangote Refinery determines pace of the market

—Experts

An Energy analyst who pleaded to be anonymous, said the global oil market had been very unstable but not necessarily high in recent times to justify high prices of petroleum products.

He said it could be directly linked to the huge capacity and dominance of the Dangote Petroleum Refinery in the domestic market.

The analyst said: “The 700,000 barrels per day capacity refinery is huge and currently controls about 80 per cent of domestic supplies. This explains why the market responds. The actions of the refinery would continue to influence other players in the market.”

However, the domestic market recorded some changes when Dangote Refinery raised petrol price by ₦15/litre amid crude oil decline.