By Erhuvwu Etarhienyo
The loading charges for Premium Motor Spirit (petrol) and other refined petroleum products at depots rose on Monday, with marketers increasing petrol and diesel prices by N43 or 4.74 per cent, citing the rising costs of crude oil. The surge in crude prices, particularly Brent crude, has been a major factor in the recent price hikes.
As of Sunday, the price of Brent crude, the global benchmark, climbed to $79.76 per barrel. This rise in crude oil prices suggests that filling stations across the country might adjust their pump prices to reflect the increased costs of refined products. The trend was seen at several depots on Monday, with notable price hikes across the country.
Price Adjustments at Key Depots
Data reviewed on Monday showed that several depots had raised their petrol prices. Swift Depot increased its petrol loading price from N907 last Friday to N950 per litre. Wosbab Depot followed suit, raising its price to N950 from N909, while Sahara Depot increased its price to N950 from N910 per litre. Private depots were also affected, with Shellplux raising its loading price to N960 from N908 and Chipset Depot asking retailers to pay N960 per litre, up from N908 per litre last Friday.
Other depots also made significant adjustments. Nipco Depot raised its price by N38, moving from N912 to N950, while Matrix Warri Depot increased its rate from N925 to N945 per litre. Marketers who sourced products from the Dangote refinery and resold to other retailers raised their prices to N923 per litre, despite buying at N899 per litre.
Rising Diesel Prices
Diesel prices also saw a rise at several depots. Stockgap Depot increased its price from N1,080 to N1,150 per litre, while Ibeto Depot approved a price hike from N1,050 to N1,150 per litre. Sahara Depot raised its price to N1,150 from N1,045 last week, while Nipco Depot increased its price to N1,150 from N1,120. Optima Depot implemented a N72 increase, setting its price at N1,120 per litre, up from N1,048.
Impact of Price Increases
The average rise in depot prices for Premium Motor Spirit (PMS) is around 7-10 percent, while diesel (AGO) prices have surged by 5-10 percent, depending on the depot and its location.
Oil and gas expert Olatide Jeremiah, CEO of petroleum price.ng, commented on the situation, stating that depots are likely to continue raising the loading prices of refined petroleum products. “This suggests that fuel prices, especially diesel prices, may rise,” Jeremiah added.
He further explained that when Brent crude neared $80, prices increased selectively at some depots in Lagos, and importers might continue to raise prices as crude oil is a major factor in the refining process.
Anticipating Future Price Fluctuations
Marketer Bayo Adelaja noted that depot prices have risen significantly, directly impacting pump prices. “Consumers should anticipate more fluctuations in the weeks ahead,” he added.
As depot rates remain unstable, further price adjustments are expected in the coming weeks. This ongoing volatility underscores the need for long-term strategies to mitigate the impact on consumers and the economy.
