Private Depots Raise Petrol Prices To N900 Per Litre

Private Depots Raise Petrol Prices To N900 Per Litre

Private oil depots have increased the price of Premium Motor Spirit (PMS), commonly known as petrol, to N900 per litre, effective this weekend. This price hike is attributed to rising crude oil prices and other global market factors.

Recent checks by Vanguard revealed that several oil marketers, including Rainoil, Prudent, A.Y.M Shafa, and Mainland, have set their depot prices at N900 per litre. This increase is expected to lead to an upward adjustment in petrol pump prices as the product reaches filling stations. The cost of crude oil, a primary input for refining, recently rose from $70 to $75 per barrel, resulting in higher costs for refineries, including the $650,000-barrel-per-day Dangote refinery….READ MORE….

The Dangote refinery, valued at $20 billion, did not load trucks based on Nigeria’s Naira-for-Crude program over the weekend. Instead, shipments were made at dollar rates to help mitigate additional costs, particularly since a significant portion of the crude oil it processes is purchased in dollars on the international market.

In response to these developments, petroleumpriceng.com highlighted the impact on oil marketers, such as MRS and Ardova, who have had to source their ship supply in dollars, leading to higher petrol prices across the nation. At present, private depots are selling petrol at N900 per litre, while independent retail outlets are offering prices between N930 and N950 per litre. The inability of the federal government to resolve issues surrounding the Naira-for-Crude policy is expected to keep petrol prices on the rise.

The Major Oil Marketers Association of Nigeria (MEMAN) also reported an increase in the landing cost of imported petrol, which rose by N88 per litre within one week, from N797 to N885 per litre. MEMAN noted that while the market stabilizes, challenges will emerge, particularly resistance from those accustomed to price controls. However, with proper regulation, industry collaboration, and transparency, Nigeria can fully realize the benefits of the market transformation.

MEMAN emphasized that a well-regulated and deregulated market would attract more investments, enhance efficiency, and foster a more competitive environment, ultimately benefiting both businesses and consumers.