Nigerians are grappling with steep and disproportionate increases in petrol pump prices as oil marketers raise retail rates far beyond the actual rise in global crude oil prices.
On Tuesday, petrol stations nationwide adjusted pump prices from an average of ₦750 per litre to ₦850, citing a rise in international crude oil prices, which moved from about $64 per barrel to $68 on Monday.
However, while crude oil prices rose by 6.2 percent, the domestic retail price of petrol jumped by 14.3 percent, suggesting that local oil companies more than doubled the impact of the global price increase on consumers.
The increase in crude prices triggered a corresponding rise in the gantry price of petrol at the Dangote Refinery, which climbed from ₦699 per litre to ₦799 per litre, representing a 14.3 percent increase.
Following this adjustment, petrol retail outlets across Abuja, Lagos, and other parts of the country swiftly raised their pump prices. NNPC Retail outlets increased prices from ₦815 to ₦835 per litre, while private marketers imposed even steeper hikes. For instance, AYM Sharfa raised its pump price from ₦815 to ₦900 per litre.
Reacting to the development, the National Public Relations Officer of the Independent Marketers Association of Nigeria (IPMAN), Chief Chinedu Ukadike, attributed the increase to rising crude oil prices.
“Crude oil price has gone up. Refiners have also adjusted their prices. Once the buying price increases, marketers must adjust accordingly. Dangote increased its price by over ₦110,” he said.
Addressing concerns over why marketers raised pump prices despite having existing stock purchased at lower rates, Ukadike explained that replacement costs informed the decision.
“When crude oil prices rise, it is not reflected in one day. Even if we sell old stock, we cannot restock at the old prices. The buying rate and operating margins are higher. Marketers must adjust prices to remain in business,” he added.