Petrol Prices Rise Again in Abuja

Many filling stations in the Federal Capital Territory (FCT) have raised the price of petrol again.

This latest increase came after Dangote Petroleum Refinery raised its gantry price by N85, from N1,265 to N1,350 per litre. This change comes as global crude oil prices continue to rise.

The new price is a 6.7 percent jump and is now above the current petrol landing cost of N1,311 per litre.

Brent crude, which is the benchmark for Nigeria’s oil, was priced at about 107.92 dollars per barrel. It has now increased to 108.21 dollars per barrel.

This price rise is putting more pressure on downstream operators and is leading to further increases in petrol prices across the FCT.

Motorists may see higher prices at filling stations soon. This will likely raise transportation costs and add to financial strain on families.

Checks by the News Agency of Nigeria (NAN) on Sunday in Abuja showed that some filling stations had started increasing their petrol prices. Motorists are now paying more for fuel.

NAN observed that MRS retail outlets have raised their price from N1,350 to N1,395 per litre. NIPCO retail outlets have also increased the price from N1,350 to N1,430 per litre.

Mobil outlets raised their price from N1,350 to N1,400 per litre.

A petrol attendant at an MRS filling station, who did not want to be named, said the price of fuel could go even higher.

"We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher," she said.

Aliyu Ilias, an economist and development expert, said the recent rise in petrol prices could worsen inflation and make life harder for Nigerians.

Mr. Ilias said that the increase in petrol prices will likely lead to higher costs for transportation and production, especially for food and other necessary goods.

"I think there should be a way of absorbing these costs. If you do not absorb them, they will show up in our next inflation figures and economic analysis."

"The more prices increase, the more the cost of producing goods, especially food, will rise because everything is affected by transportation costs."

"This kind of change is not good for the economy at all, and people are going to face more hardship as a result," he said.

Owei Lakemfa, a former secretary-general of the Organisation of African Trade Union Unity (OATUU), said Nigeria needs to protect consumers from global oil price changes.

Mr. Lakemfa said that Nigeria should improve its economic planning and regulations to achieve this.

He pointed out that a country like Nigeria, which produces crude oil and has many people, should have measures in place to protect its citizens from sudden price increases for petroleum products.

"The ongoing geopolitical tensions involving major oil-producing and consuming countries, as well as attacks in the Middle East, are factors that can affect global oil prices and should not surprise policymakers."

"We have known that the conflict between the US and Iran will affect the shipping of oil products. We know that."

"In basic economics, when you are close to the source of your products, you have advantages. If we produce oil in Nigeria, refining in Nigeria cannot be the same as importing fuel. It cannot be," he said.

He added that importing refined petroleum products brings extra costs, such as labor, insurance, and shipping.

He called for better planning and regulations, saying that local fuel prices should not jump every time there is a crisis abroad.

"It cannot just be that any time Iran attacks the US, or there is another conflict, the price goes up. We have to plan. And that is the only sense of governance," he said.

He also shared worries about the structure of Nigeria’s downstream petroleum market, stating that it has elements of oligopoly and monopoly that allow major players to influence prices.

He emphasized that regulatory agencies must stop any individual or group from having too much control over the price of petrol.

"You cannot allow any individual or group to dictate to the country. That is why you have regulatory agencies. The government is there to protect the state and the people," he said.

Mr. Lakemfa urged the federal government and consumer protection agencies to take tougher actions against sudden price hikes.

He said that changes in global oil prices should not automatically lead to similar increases in domestic petrol prices.

He also mentioned that good regulation and planning are needed to protect consumers and prevent further economic suffering.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said marketers changed their pump prices following adjustments by Dangote refinery.

Mr. Ukadike said the frequent price changes are causing uncertainty for marketers and consumers, as the cost of replacing products can vary.