Petroleum markers nationwide have reduced their fuel pump prices despite a rise in the global crude oil benchmark A reliable source revealed that petrol prices at several filling stations visited are now above N1,000 many other filling stations remained closed as managers await instructions from their head offices on the following price adjustment. According to our source “filling stations have increased their pump prices to between N1,050 and N1,150 per litre.”The new prices represent an increase of over N100 compared to the previous average of N920, N950 per litre.
Aside from the price change, many filling stations in Lagos were also closed, with workers standing around; A manager of one of the filling stations visited, who identified himself as Aliyu, confirmed stock availability but pointed out that “Before the recent price increase, we were selling at N940 until instructions came from the headquarters to stop selling.”There is fuel but for now, we are awaiting instructions on the correct price before we resume sales.
“Our reporter asked the reason for the fuel prices increase and responding the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the recent increase in petrol prices led to the rise in crude oil prices in the international market. PETROAN stated this in a statement made available to journalists. In the statement, PETROAN clarified that the benchmark for oil prices, Brent crude, was priced at $80.85 per barrel, while WTI crude and the OPEC basket were valued at $78.82 and $81.72 per barrel, respectively. These prices reached a four-month high following the United States’ implementation of new sanctions on Russian oil.
Marketers give reasons for crashing petrol prices despite high crude prices. The statement said Section 205 of the Petroleum Industry Act (PIA) states that petrol prices are determined by market forces, indicating that the government and NNPC no longer set petrol prices. As a result, refinery operators in Nigeria will adjust in response to changes in crude oil prices.The National President of PETROAN, Billy Gillis-Harry, emphasised that crude oil prices will inevitably impact domestic costs. He stated: “It’s no longer funny; even retail outlets owners are affected by this up-and-down dwindling of prices. It affects our business.”To reduce the impact of PMS pricing in Nigeria, PETROAN advocates for privatising government-owned refineries and promoting competition in the downstream sector.
TUC president identified the cause of hikes in fuel price in Nigeria Upright magazine reported that Festus Osifo, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), blamed the rise in petrol prices on naira depreciation. Marketers address new petrol price across filling stations in Lagos, Abuja, others explained that the fluctuation of the naira-dollar exchange rate directly increases the fuel price index. TUC boss Osifo said his organisation presented their ‘worry’ to state governors regarding how the exchange rate reportedly shoots up fuel prices.
