The Nigerian National Petroleum Company Limited (NNPCL) has increased the pump price of Premium Motor Spirit (PMS), commonly known as petrol, with motorists in Abuja and surrounding areas now paying as much as N1,430 per litre at some of the company’s retail outlets.
A market survey conducted in Abuja on Tuesday showed that several NNPCL filling stations had adjusted their petrol prices to between N1,395 and N1,430 per litre, marking another increase in the cost of the commodity.
The latest adjustment represents an increase of between N50 and N85 per litre, depending on the location and the previous price at each outlet.
The development comes only days after the Dangote Petroleum Refinery increased its petrol gantry price by N85 per litre, raising the price from N1,265 to N1,350 per litre.
The refinery’s latest adjustment has since triggered a fresh round of price reviews across the downstream petroleum market.
DDM News reports that the latest NNPCL adjustment adds to a series of recent petrol price increases that have pushed the cost of transportation and other daily activities higher across several parts of the country.
Checks across Abuja showed that the new prices were being implemented at a number of NNPCL retail outlets, including stations around Airport Junction, Gwarinpa, Kubwa Expressway, Wuse Zone 4 and other locations within the Federal Capital Territory.
The increase means motorists who previously purchased petrol at prices around N1,310 to N1,350 per litre are now paying significantly more, depending on the filling station and the prevailing retail price in their area.
The development follows similar price adjustments by other major fuel marketers in Abuja.
Recent checks by the News Agency of Nigeria showed that MRS outlets increased their pump price from N1,350 to N1,395 per litre, while NIPCO moved its price to N1,430 per litre.
Mobil outlets also adjusted their prices to about N1,400 per litre.
The latest changes across the downstream market have been closely linked to the increase in Dangote Refinery’s gantry price.
The refinery’s decision to increase its petrol price by N85, representing a 6.7 per cent adjustment, came amid a sharp rise in international crude oil prices.
The higher cost of crude and petroleum product replacement has increased pressure on refiners, distributors and retailers operating within Nigeria’s petroleum supply chain.
For motorists, however, the impact is being felt immediately at the filling station.
An increase in petrol prices often extends beyond the cost of filling a vehicle.
Transportation operators may face higher operating expenses, while businesses that depend on petrol for logistics, electricity generation and other activities could also experience increased costs.
The effect can therefore spread through different parts of the economy as businesses and transport operators review their charges to reflect higher fuel expenses.
DDM News gathered that the latest price movement has also raised concerns over the possible effect on household spending, particularly at a time when many consumers are already dealing with high transportation and food costs.
The development could place additional pressure on commuters who rely heavily on commercial buses, taxis and other forms of road transportation.
Transport operators typically consider fuel costs when determining fares, although the extent to which an increase at the pump translates into higher transport charges can vary from one route and operator to another.
Businesses could also feel the impact, particularly those that depend on petrol-powered generators or vehicles to move goods and services.
The latest increase is also occurring against the backdrop of rising global crude oil prices.
Brent crude, the international benchmark used to assess the price of Nigeria’s crude oil, has recently traded above the $100 per barrel mark amid heightened concerns in the international oil market.
Higher international crude prices can place pressure on domestic petroleum prices because the cost of producing and supplying refined products is influenced by crude oil prices, logistics and other market factors.
For Nigeria, the situation remains particularly significant because changes in the downstream market can have broad consequences for consumers and businesses.
Although Nigeria is a major crude oil producer, the country’s petroleum market has undergone significant changes as domestic refining capacity expands and pricing becomes increasingly responsive to market conditions.
Dangote Refinery’s recent price adjustment has consequently become a major factor in the latest movement in petrol prices across filling stations.
Industry representatives have also pointed to the uncertainty created by frequent changes in product prices.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers had been reviewing their pump prices following successive adjustments in the refinery’s pricing.
According to reports, the frequent price changes make it difficult for marketers to determine the replacement cost of their existing stock because the price at which they will purchase their next supply may be different from the price at which the current stock was acquired.
This creates a difficult situation for both marketers and consumers.
A filling station may sell products purchased at an earlier, lower price, but the cost of replacing that stock could be significantly higher.
Marketers may therefore adjust their pump prices in anticipation of the higher replacement cost.
Recent developments have also raised questions about how far petrol prices could move if international crude prices remain elevated and downstream costs continue to rise.
Some industry observers have warned that continued increases in crude prices, freight and distribution expenses could place further pressure on pump prices, particularly in inland markets such as Abuja, where petroleum products have to travel significant distances from coastal supply points.
The latest NNPCL increase therefore represents another important development in Nigeria’s rapidly changing downstream petroleum market.
For consumers, the immediate concern remains the rising cost of fuel and its potential effect on transportation, household budgets and the prices of goods and services.
As filling stations continue to adjust their pump prices in response to changes in wholesale and supply costs, motorists are likely to remain sensitive to further movements in the price of petrol.
The increase to between N1,395 and N1,430 per litre at several NNPCL outlets in Abuja signals another significant shift in the retail market and adds to the series of adjustments recorded across the Federal Capital Territory in recent days.
