The pump prices of Premium Motor Spirit (petrol) are nearing N1,400 per litre in many parts of the country as the United States and Iran fail to agree on a ceasefire that should lead to the reopening of the Strait of Hormuz.
As the crisis in the Middle East lingers, coupled with the exit of the United Arab Emirates from the Organisation of the Petroleum Exporting Countries on Tuesday, the prices of petrol have continued to rise.
From $105 per barrel on Monday, Brent crude jumped to $118 on Wednesday. As a result, the Dangote Petroleum Refinery jerked up its petrol gantry price from N1,200 to N1,275 per barrel.
Price data obtained from Petroleumprice.ng and confirmation from a Dangote refinery official on Wednesday revealed that the refinery raised its petrol loading price from N1,200 per litre to N1,275 per litre, while coastal supply prices climbed to N1,215 per litre.
Another source familiar with the situation disclosed that the refinery halted its pro forma invoice entry process at about 4 pm on Tuesday, effectively disrupting normal supply scheduling across its loading system. The suspension, according to the sources, led to an immediate stoppage of both petrol and diesel sales to marketers.
This is coming as the Nigerian National Petroleum Company Limited raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, according to a report by Oilprice.com.
The report stated that Nigeria was reaping the benefits of the US-Iran war, as the NNPC increased the price of its flagship grade, Bonny Light, by $6.13 per barrel for May compared to April. Similarly, Forcados was also raised by $7.01 per barrel.
“Nigeria reaps the benefits of the Iran war. Nigeria’s national oil company NNPC has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, hiking its flagship grade Bonny Light by a whopping $6.13 per barrel compared to April, while Forcados is up by $7.01 per barrel,” the report stated.
The PUNCH had on Wednesday projected that the development might indicate that the Dangote Petroleum Refinery could pay more for crude, thereby pushing up fuel prices.
It was observed that filling stations wasted no time in moving up their pump prices from an average of N1,250 to over N1,300 per litre on Wednesday in Lagos and other states in the South-West. Checks by The PUNCH showed that filling stations in Lagos and Ogun states sold petrol at prices ranging from N1,315 to N1,350 as of Wednesday.
The NNPC filling stations at the Mowe/Ibafo axis of the Lagos-Ibadan Expressway sold petrol at N1,315 a litre, while Mobil offered N1,320.
The prices depend on the location. In the north and other locations far from the Dangote refinery, petrol prices were raised to around N1,400 per litre. People living in Ogun border communities said a litre of petrol is close to N1,700 because the Federal Government has not allowed the supply of petroleum products in their areas.
Speaking, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said prices may continue to soar unless US President Donald Trump allows peace to reign in the Middle East.
Gillis-Harry said fuel sellers have been subjected to sudden price volatility that makes business decisions somewhat difficult. He regretted that the Federal Government is not taking steps to support the masses despite making more gains from the high oil prices.
