Filling stations nationwide have reduced their fuel pump prices despite a rise in the global crude oil benchmarkChecks by Henzodaily.ng revealed that petrol prices at several filling stations visited are now above N1,000Many other filling stations remain closed as managers await instructions from their head offices on the next price adjustment
Henzodaily.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Oil marketers have changed the price of Premium Motor Spirit, popularly known as petrol.
Checks by Henzodaily.ng show that filling stations have increased their pump prices to between N1,050 and N1,150 per litre.
New fuel prices at filling stations
Photo credit: Bloomberg/contributor
Source: Getty Images
The new prices represent an increase of over N100 compared to the previous average price of N920 per litre.
Aside from the price change, many filling stations in Lagos were also closed, with workers standing around.
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A manager of one of the filling stations visited, who identified himself as Aliyu, confirmed stock availability to Henzodaily.ng.
He said:
“Before the recent price increase, we were selling at N940 until instructions came from the headquarters to stop selling.
“There is fuel but for now, we are awaiting instructions on the correct price before we resume sales.”
Why fuel prices increase
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the recent increase in petrol prices to the rise in crude oil prices in the international market.
PETROAN stated this in a statement made available to journalists, the nation reports.
In the statement, PETROAN clarified that the benchmark for oil prices, Brent crude, was priced at $80.85 per barrel, while WTI crude and the OPEC basket were valued at $78.82 and $81.72 per barrel, respectively.
These prices reached a four-month high following the United States’ implementation of new sanctions on Russian oil.
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The statement said Section 205 of the Petroleum Industry Act (PIA) states that petrol prices are determined by market forces, indicating that the government and NNPC no longer set petrol prices.
As a result, operators of refineries in Nigeria will respond accordingly to changes in crude oil prices.
The National President of PETROAN, Billy Gillis-Harry, insisted that the increase in crude oil prices would inevitably affect domestic costs.
He said:
“It’s no longer funny; even retail outlets owners are affected by this up-and-down dwindling of prices. It affects our business.”
TUC president identifies cause of hikes in fuel price in Nigeria
Henzodaily.ng reported that Festus Osifo a top labour leader has blamed the rise petrol prices to naira depreciation.
Osifo explained that the naira-dollar exchange rate’s fluctuation directly increases the fuel price index
The TUC boss said his organisation has already presented their ‘worry’ to state governors regarding how the exchange rate reportedly shoots up fuel price
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Source: Henzodaily.ng