Rising crude oil prices drive Nigeria’s petrol marketers to hike pump prices, as depot costs surge
Depot loading prices for Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly referred to as petrol and diesel, surged on Monday, reflecting the ripple effects of rising global crude oil prices.
Marketers increased petrol and diesel prices at depots by as much as N43 per litre, representing a 4.74% hike, as Brent crude oil hit $79.76 per barrel over the weekend.
The cost adjustments at depots are expected to trigger higher pump prices at filling stations nationwide, exacerbating consumer woes in a country already grappling with inflationary pressures.
Depot Pricing Analysis
A detailed analysis of depot price movements on Monday revealed significant hikes across multiple facilities.
Swift Depot raised its loading price to N950 per litre from N907 last Friday. Wosbab Depot adjusted its price to N950 from N909, while Sahara Depot also increased its price to N950, up from N910.
Shellplux Depot raised prices to N960, a sharp rise from N908 last week. Chipet Depot matched the N960 per litre mark, up from N908.
Meanwhile, Nipco Depot increased its rate by N38, selling petrol at N950 per litre, while Matrix Warri Depot raised prices to N945 per litre from N925. Additionally, marketers sourcing from Dangote Refinery now resell petrol at N923 per litre, despite acquiring it for N899 per litre from the refinery.
Diesel Price Hikes Follow Suit
The diesel market is witnessing similar inflationary trends. Stockgap Depot increased its diesel price from ₦1,080 to ₦1,150 per litre. Ibeto Depot raised rates from ₦1,050 to ₦1,150, and Sahara Depot adjusted prices from ₦1,045 to ₦1,150.
Nipco Depot set a new price of ₦1,150 per litre, up from ₦1,120, while Optima Depot increased prices to ₦1,120 from ₦1,048.
The average price hike for petrol stands at 7-10%, while diesel prices have risen by 5-10%, depending on the depot and geographic location.
Expert Insights on Rising Prices
Olatide Jeremiah, CEO of petroleumprice.ng, explained that rising depot costs are directly tied to global oil price fluctuations. “With Brent crude nearing $80 per barrel, importers are facing higher refining costs, leading to selective price increases at depots. This trend is likely to persist, driving up fuel prices across the country,” Jeremiah said.
Echoing this sentiment, Bayo Adelaja, a marketer, added, “Depot rates have escalated sharply, and this directly impacts pump prices. Consumers should prepare for further fluctuations in the coming weeks.”.
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Implications for Consumers and the Economy
The surge in depot prices poses a significant challenge for consumers and businesses alike, as fuel price increases have a cascading effect on transportation, goods, and services. Experts stress the urgency for long-term strategies to cushion the economy against the volatility of global crude oil prices.
With depot prices showing no signs of stabilizing, industry stakeholders call for robust reforms to address supply chain inefficiencies and reduce reliance on imports.
