Petrol price jumps to N1,430 in Abuja

Petrol prices have continued to climb across the Federal Capital Territory, with some filling stations in Abuja now selling Premium Motor Spirit at as much as N1,430 per litre.

The latest increase followed an N85 adjustment in the gantry price of Dangote Petroleum Refinery, which rose from N1,265 to N1,350 per litre as international crude oil prices surged amid the worsening crisis around the Strait of Hormuz.

The adjustment represents a 6.7 per cent increase and puts the refinery’s wholesale price above the current petrol landing cost of N1,311 per litre.

Brent crude, Nigeria’s benchmark, was trading at about $107.92 per barrel before rising to $108.21 per barrel.

The development has heightened pressure on downstream operators and prompted further pump price increases across the FCT, raising concerns about additional transportation costs and pressure on household finances.

Checks on Sunday showed that several filling stations had already adjusted their prices upwards.

MRS outlets, which previously sold petrol at N1,350 per litre, increased the price to N1,395, while NIPCO outlets raised theirs to N1,430 per litre. Mobil stations also increased their pump price from N1,350 to N1,400 per litre.

A petrol attendant at an MRS filling station, who requested anonymity, said another increase could take effect from Monday.

“We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.

An economist and development expert, Dr Aliyu Ilias, warned that the latest increase could fuel inflation and worsen economic difficulties for Nigerians.

Ilias said higher petrol prices would likely push up transportation and production expenses, particularly for food and other essential goods.

“I think there should be a way of absorbing these costs. If you do not absorb them, they will show up in our next inflation figures and economic analysis.

“The more prices increase, the more the cost of producing goods, especially food, will rise because everything is affected by transportation costs.

“This kind of change is not good for the economy at all, and people are going to face more hardship as a result,” he said.

Former Secretary-General of the Organisation of African Trade Union Unity, Mr Owei Lakemfa, called for measures to protect Nigerian consumers from the effects of fluctuations in international oil prices.

Lakemfa said Nigeria needed stronger economic planning and regulation to cushion citizens from sudden increases in petroleum prices.

According to him, a country that produces crude oil and has a large population should have mechanisms to protect its people from external shocks affecting petroleum prices.

“The ongoing geopolitical tensions involving major oil-producing and consuming countries, as well as attacks in the Middle East, are factors that can affect global oil prices and should not come as a surprise to policymakers.

“We have known that the conflict between the U.S. and Iran will affect the shipping of oil products. We know that.

“In basic economics, when you are close to the source of your products, you have advantages. If we produce oil in Nigeria, refining in Nigeria can not be the same as importing fuel. It can not be,” he said.

He noted that importing refined petroleum products involved additional expenses, including labour, insurance and shipping costs, among other charges incurred in the exporting country.

Lakemfa urged the government to improve planning and regulation so that domestic petrol prices would not automatically rise in response to every geopolitical crisis outside Nigeria.

“It can not just be that any time Iran attacks the U.S. or there is another conflict, the price goes up. We have to plan. And that is the only sense of governance,” he said.

He also raised concerns about the structure of Nigeria’s downstream petroleum market, which he said contained elements of oligopoly and monopoly capable of giving major players considerable influence over prices.

According to him, regulators must ensure that no individual or group is allowed to exercise excessive control over the price of petrol, a critical commodity.

“You can not allow any individual or group to dictate to the country. That is why you have regulatory agencies. The government is there to protect the state and the people,” he said.

Lakemfa further urged the Federal Government and consumer protection agencies to intensify efforts against arbitrary price increases.

He maintained that fluctuations in international crude prices should not automatically result in corresponding increases in domestic petrol prices, stressing the need for effective regulation and advance planning.

Meanwhile, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers had adjusted their pump prices following successive changes in the Dangote refinery’s pricing.

Ukadike said the frequent price reviews had created uncertainty for marketers and consumers because the cost of replacing petroleum products could change rapidly.