Current Situation
The price of petrol in Nigeria has seen a dramatic increase, now reaching N1,400 per litre. This surge follows a period where petrol was available at approximately N937 per litre at some stations, indicating a significant rise in fuel costs.
In recent developments, Dangote Petroleum Refinery has raised its gantry price for petrol to N1,175 per litre. This adjustment is part of a broader trend influenced by global crude oil prices, which have surged above $80 per barrel, affecting local fuel pricing.
Some filling stations have reported selling petrol at prices ranging from N1,250 to N1,400, reflecting the volatile nature of the market. Diesel prices have also escalated, now reaching N1,750 per litre.
Industry experts are voicing concerns over the implications of these price hikes. Dr. Chinyere Almona noted that the increases in fuel pump prices are likely to impact transport and food prices, particularly concerning food distribution logistics.
Inflation Concerns
The Organised Private Sector has warned that the rising petrol prices could trigger inflation across various sectors of the economy. Dr. Femi Egbesola emphasized that energy costs, particularly for petrol and diesel, are major drivers of inflation due to their widespread use in multiple industries.
Paul Alaje remarked, “As crude oil goes up, the cost of PMS, diesel and Jet-A1 will also follow,” highlighting the direct correlation between global oil prices and local fuel costs.
Details remain unconfirmed regarding the closure of some filling stations, which may be linked to the current pricing dynamics. Additionally, the ongoing US-Iran conflict adds an element of uncertainty to the future of local fuel prices.
Observers are closely monitoring the situation, as the market has been described as extremely volatile, with replacement costs shifting significantly in recent days, according to a Dangote Petroleum Refinery official.