Nigerians may soon have to pay more for Premium Motor Spirit (PMS), commonly referred to fuel, since depot prices in key petroleum hubs have skyrocketed to N1,290 a litre due to a fresh spike in global crude oil prices.
If the most recent increase in depot costs continues, marketers are anticipated to examine their pump pricing, which might intensify the financial pressure on individuals and companies.
According to yesterday’s most recent midday depot pricing report, petrol prices increased dramatically in Lagos, Calabar, Port Harcourt and Warri.
Petrol prices in Calabar increased by N87 per litre from N1,203 per litre to N1,290 per litre at Mainland and Soroman depots.
Matrix also raised its price by N86/litre to N1,290, while Sobaz increased its price by N80/litre to N1,285.
In Lagos, the Dangote Refinery increased its petrol price by N66/litre, from N1,200 to N1,266/litre.
Pinnacle also moved from N1,201 to N1,266, while African Terminal and Integrated increased their prices by N67/litre to N1,268.
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The increases were more pronounced at some independent depots, with Masters raising its price by N75/litre to N1,285, while Liquid Bulk, Sigmund and T.S.L increased theirs by N63/litre to N1,278.
The latest development comes as international oil prices have strengthened sharply amid renewed tensions in the Middle East.
Brent crude futures settled at about $90.49 per barrel on Tuesday, after rising 2.71 per cent following renewed military exchanges between the United States and Iran.
The development is particularly significant for Nigeria because higher international crude prices could increase the replacement cost of imported petrol and influence the pricing decisions of domestic refiners and marketers.
Industry watchers said the combination of higher crude oil prices, rising depot costs, logistics expenses and distribution margins could put further pressure on filling-station prices.
The latest development is coming barely days after concerns emerged over the widening divergence between international crude prices and domestic petrol depot prices.
MRS that takes direct delivery from the Dangote Refinery sold the product at N1, 310 per litre while many others sold at higher prices ranging between N1,350 and N1, 400 per litre.
However, the expected further rise in retail prices would raise the cost of transportation and logistics, while businesses that depend on petrol and diesel for power generation could face higher operating expenses.
