Consumers Face Tougher Times As Petrol Prices Climb Amid Naira Slide To N1,621/$

Consumers Face Tougher Times As Petrol Prices Climb Amid Naira Slide To N1,621/$Yesterday, it emerged that consumers will likely pay more for imported petrol as the exchange rate weakened by 1.6%, dropping to N1,621/$ from N1,595/$ recorded earlier this week.In response, private depot owners in Lagos and surrounding areas have raised the depot price of petrol to over N960 per litre, up from N710 per litre, marking a 35.2% increase.

This surge in prices implies that the government will require more funds to import fuel, transferring the additional costs to consumers. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has confirmed that the sector remains deregulated.

Current analysis obtained by Vanguard shows that the total landing cost, which includes product costs, financing, freight, port charges, insurance, storage, and regulatory fees from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), now exceeds N1,200 per litre.

NNPC and Independents Selling at N895–N1,000 Per Litre
Meanwhile, NNPC Ltd and major oil marketers have been selling petrol at N895 per litre, while independent marketers are charging between N900 and N1,000 per litre, depending on location.

Supply remains unstable, with many stations either closed due to lack of fuel or facing long queues. Illegal operators have taken advantage of the situation, selling petrol in cans for N1,200 to N1,500 per litre in various parts of Lagos, including Maryland, Ikorodu Road, and Ikoyi.

Transport fares have also skyrocketed, with the cost of commuting from Victoria Island to Mile 2 increasing by over 100%, from N1,500 to N3,000, due to the rising cost of fuel.

Massive Importation to Continue
According to Vanguard checks, large-scale petrol imports will continue in the short term until issues related to pricing, transportation, and distribution are resolved.

Mazi Colman Obasi, National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), commented: “We’ve been informed that the $20 billion Dangote Refinery has begun refining. However, commercial production will not commence until matters such as crude oil supply, pricing, and marketing are fully settled. With its 650,000 barrels per day capacity, the refinery should meet domestic demand and export some output globally.”

Another expert, speaking anonymously, emphasized that Nigeria needs to address the condition of its domestic refineries to reduce import reliance. “As a major crude oil producer, Nigeria should not remain dependent on imported petroleum products for much longer,” he said.

Published by Caleb Alfred