Petrol depot prices have surged across Lagos, Port Harcourt, Warri and Calabar, raising concerns about further increases in Nigeria’s domestic fuel prices, even as some filling stations in Lagos continue to sell petrol below the rates charged by independent marketers.
Several depot operators in Port Harcourt raised their Premium Motor Spirit (PMS) prices to N1,900 per litre on Friday, while diesel prices also climbed to N1,900 per litre at some depots in Warri.
NIPCO led the petrol price increases in Port Harcourt, raising its price by N170 per litre from N1,730 to N1,900. Six other depot operators also increased their prices by N150 per litre to the same level.
The increases coincided with modest gains in international crude oil prices, with Brent crude rising to $104.50 per barrel from $104.28, while West Texas Intermediate (WTI) increased to $91.73 from $91.49.
However, movements across global oil benchmarks and refined petroleum products remained mixed, suggesting that domestic supply conditions, replacement costs, transportation expenses and individual marketers’ pricing decisions may also be contributing to the latest increases.
Petrol Depot Prices Rise Across Port Harcourt
A review of depot prices showed that African Terminal, Ascon, Eterna, Gulf Treasure, Ibachem and Ibeto increased their petrol prices in Port Harcourt to N1,900 per litre from N1,750.
Duport and Integrated also raised their prices, moving from N1,750 to N1,806 per litre, representing an increase of N56.
The latest adjustments place petrol depot prices in Port Harcourt significantly above the rates recorded at several depots in Lagos, highlighting the differences in wholesale fuel costs across Nigeria’s major distribution centres.
Lagos Petrol Depot Prices Also Increase
In Lagos, several depot operators adjusted their prices upward, although the increases were considerably smaller than those recorded in Port Harcourt.
Masters raised its petrol price to N1,350 per litre from N1,303, while Matrix increased its rate to N1,360 from N1,330.
Sigmund and T.S.L moved their prices to N1,350 per litre from N1,300, while NIPCO increased its rate to N1,350 from N1,326.
In Calabar, Matrix raised its petrol price to N1,370 per litre from N1,315.
Meanwhile, depot operators in Warri also implemented increases. Keonamex, Matrix, Nepal and Parker raised their prices to N1,360 per litre from N1,315, while Optima increased its rate to N1,360 from N1,330.
The price adjustments reflect varying cost structures and pricing decisions across the downstream petroleum market.
Pump Prices Differ Across Filling Stations
Despite the increases in depot prices, retail petrol prices in Lagos and surrounding areas remained below N1,400 per litre at several filling stations.
NNPC Limited sold petrol at N1,360 per litre at its filling stations, while MRS Oil Nigeria Plc retailed the product at N1,338 per litre.
11 Plc sold petrol at N1,338.80 per litre, while independent marketers charged between N1,368 and N1,400, depending on location.
Motorists buying from MRS Oil and 11 Plc therefore paid less than customers patronising some independent filling stations.
The differences between depot and pump prices demonstrate how wholesale price changes do not necessarily translate into uniform retail adjustments across all locations and operators.
However, sustained increases in depot prices could put upward pressure on retail pump prices if marketers pass on higher procurement and distribution costs to consumers.
Diesel Prices Hit N1,900 Per Litre in Warri
The diesel market also recorded significant price increases, adding to concerns about rising energy and operating costs for Nigerian businesses.
In Warri, Rain Oil and Matrix increased their Automotive Gas Oil (AGO) prices by N180 per litre, moving from N1,720 to N1,900.
In Port Harcourt, Dangote raised its diesel price to N1,720 per litre from N1,702, while Masters increased its rate to N1,825 from N1,788.
Higher diesel prices could further strain manufacturers, transport operators, commercial establishments and businesses that depend on diesel-powered generators for electricity.
The increases may also raise transportation and logistics expenses, potentially adding to the cost of moving goods and services across the country if the higher rates persist.
Global Oil Prices Record Mixed Movements
International oil market indicators recorded different movements on Friday, with some crude oil benchmarks rising while others declined.
The OPEC Basket increased to $109.50 per barrel from $108.59, while WTI Midland climbed to $92.74 from $92.32.
Natural gas prices also rose to $3.235 from $3.168, while the Indian Basket advanced to $121.10 per barrel from $117.63.
However, Murban crude fell to $108.50 per barrel from $110.49.
Refined petroleum products also recorded declines. Gasoline prices dropped to $3.293 from $3.316, while heating oil fell to $4.724 from $4.883.
The mixed performance suggests that domestic petrol and diesel prices cannot be explained by crude oil movements alone. Other factors, including product availability, import and replacement costs, foreign exchange exposure, logistics and depot operators’ individual pricing strategies, may influence the prices paid by marketers.
Petroleumprice.ng CEO Comments on Global Market Influence
Commenting on the developments in an interview with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said Nigeria’s downstream petroleum sector would continue to respond to developments in the international oil market.
“Despite domestic issues and development in Nigeria, the downstream sector would continue to respond or react to developments at the global oil market,” Jeremiah said.
His remarks highlight the connection between international energy market movements and domestic petroleum pricing, although local supply conditions and other operating expenses can also affect prices.
Further Petrol Price Increases Remain a Concern
The latest depot price adjustments underscore the pressure facing Nigeria’s downstream petroleum market, with petrol reaching N1,900 per litre at several depots in Port Harcourt and diesel recording the same price at some depots in Warri.
While some filling stations in Lagos continue to offer petrol at comparatively lower rates, sustained increases in wholesale prices could place additional pressure on retail fuel costs.
For motorists, transport operators and businesses, any further increase in petrol or diesel prices could translate into higher transportation, production and operating expenses.
The extent to which the latest depot price increases will affect pump prices will depend on subsequent market movements, product supply conditions and the pricing decisions of individual marketers.