…fuel stations across the country raised their pump prices from an average of N750 per litre to N850 per litre,
ABUJA, NIGERIA- The iNews Times | Fuel prices in Nigeria have surged, leaving citizens struggling as marketers push retail rates far ahead of the rises in international crude oil prices.
On Tuesday, petrol stations across the country raised their pump prices from an average of N750 per litre to N850 per litre, citing a similar increase in crude oil prices on the global market, which rose from an average of $64 per barrel to $68 on Monday.
However, while crude oil prices climbed by 6.2 percent, local retail prices jumped by 14.3 percent, showing that domestic oil companies more than doubled the rate of increase in their main input cost. The surge in crude prices also pushed the gantry price of fuel at the Dangote Refinery up by 14.3 percent, from N699 per litre to N799 per litre.
Following the refinery adjustment, retail outlets in Abuja, Lagos, and other parts of the country raised their pump prices. NNPC retail outlets increased the price from N815 to N835 per litre, while other marketers implemented steeper hikes. For example, AYM Sharfa raised its price from N815 per litre to N900.
Commenting on the increases, Chief Chinedu Ukadike, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), attributed the hike to rising crude oil prices.
He said, “Crude oil prices have gone up. The refiners have increased their prices, and when your buying cost rises, you have to adjust your selling price. Dangote has increased by over 110 Naira.”
On why marketers raised fuel pump prices despite having older stock, he explained, “The crude oil price didn’t just go up today. That’s the nature of the business. Even if we sell our old stock, we can’t buy new stock at the old price. Margins are high, and the cost of procurement is high. Marketers have to find a way to stay in business.”
