Emmanuel OchayiThe loading cost of Premium Motor Spirit (petrol) and other refined petroleum products at depots surged on Monday, causing widespread concern among consumers and industry stakeholders. It was reported that petrol and diesel prices at depots increased by N43 or 4.74 per cent, a rise attributed to escalating crude oil prices.
Data obtained from loading depots showed a consistent increase across major depots. Swift Depot, Wosbab Depot, and Sahara Depot all raised their prices to N950 per litre from previous rates of N907, N909, and N910, respectively. Meanwhile, Shellplux Depot now charges N960 per litre, up from N908 last week. Chipet Depot followed suit with an increase to N960 per litre from N908.
Join our WhatsApp ChannelNipco Depot saw a significant jump from N912 to N950 per litre, and Matrix Warri Depot adjusted its rates from N925 to N945. Furthermore, marketers sourcing products from the Dangote refinery increased their resale price to N923 per litre, despite purchasing at N899 per litre.
Diesel Prices Also on the Rise
The cost of diesel has not been spared in this upward trend. Stockgap Depot raised its diesel price from N1,080 to N1,150 per litre. Ibeto Depot and Sahara Depot made similar adjustments, increasing their prices from N1,050 to N1,150 and from N1,045 to N1,150, respectively. Nipco Depot’s diesel price also climbed from N1,120 to N1,150 per litre, while Optima Depot recorded a N72 increase, bringing its price to N1,120 per litre from N1,048.
Overall, the average increase in depot prices for petrol stands at 7-10 percent, while diesel prices have risen by 5-10 percent, varying by depot and location.
Industry Reactions to the Fuel Price Hike
Reacting to these developments, Olatide Jeremiah, CEO of petroleumprice.ng, expressed concerns about the potential for further increases in fuel prices, especially diesel. “It implies that there is a possibility of increased fuel prices, particularly diesel prices,” Jeremiah said. He pointed out that Brent crude, which is a key factor in refining costs, had approached $80 per barrel, leading to selective price hikes in Lagos depots as early as Friday.
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Bayo Adelaja, another marketer, echoed these concerns. “Depot rates have escalated sharply, and this is directly affecting pump prices. Consumers should expect further fluctuations in the coming weeks,” Adelaja noted.
Economic Implications of the Fuel Price Hike
The continuous rise in depot costs signals potential adjustments at filling stations nationwide. With depot rates showing no signs of stabilising, experts highlight the need for long-term strategies to mitigate the impact on consumers and the economy. The increasing prices are expected to put pressure on consumers, who may face higher transportation and living costs.
Jeremiah stressed the significance of monitoring crude oil prices, which heavily influence the cost of refined products. “A large chunk of oil marketers import petroleum products, and Brent crude is a major determining factor in the refining process,” he explained.
As the situation evolves, consumers and stakeholders alike brace for the potential ripple effects of the ongoing fuel price hike.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
