Fresh pressure is mounting on petrol prices in Nigeria as the estimated landing cost of Premium Motor Spirit (PMS) has risen to ₦1,311.36 per litre, exceeding the ₦1,265 per litre gantry price of Dangote Petroleum Refinery by ₦46.36.
The development has raised concerns that petrol pump prices could increase further if the recent surge in international crude oil prices persists.
Brent crude was trading at about $105 per barrel on Thursday, adding to pressure on the cost of crude oil and refined petroleum products.
According to the latest report by the Major Energy Marketers Association of Nigeria (MEMAN), the PMS landing cost stood at ₦1,311.36 per litre as of September 8, compared with a 30-day average of ₦1,216.34.
The latest figure represents an increase of ₦95.02 per litre over the monthly average.
Rising landing cost puts pressure on petrol prices
The widening gap between the international replacement cost of petrol and Dangote Refinery’s current gantry price could increase pressure on domestic pump prices.
However, Dangote Refinery has not announced any fresh adjustment to its PMS price.
Checks in Lagos on Thursday showed that several filling stations had yet to significantly alter their pump prices, with many outlets selling petrol between ₦1,290 and ₦1,310 per litre.
Some stations, however, were already selling above that range.
A motorist identified as Mr Emma said he bought petrol at ₦1,330 per litre at Conoil, Ojota, Lagos.
He noted that some other major marketers had maintained their existing prices.
“Mobil, Total, AP and Rainoil are still selling at the same prices,” a commercial driver operating along the Lagos Island-Ikeja route said.
Motorists fear higher transport costs
The latest development has heightened concerns among motorists and consumers that another petrol price increase could trigger higher transportation costs and further increase the cost of living.
Industry watchers said sustained increases in crude oil and refined petroleum product prices could eventually be reflected in domestic petrol prices, particularly if the difference between international replacement costs and local refinery prices continues to widen.
The situation comes amid a renewed rise in Brent crude above the $100 per barrel mark, increasing pressure on the cost of crude feedstock and imported refined products.
For motorists and other consumers, attention is now focused on whether the increase in PMS landing cost will translate into higher pump prices in the coming days.
While Dangote Refinery has not announced a new PMS price, continued pressure from the international market could make another upward price review increasingly likely.
