The pump price of Premium Motor Spirit (PMS), commonly known as petrol, has surged again to N955 per litre in parts of the country, including the Federal Capital Territory (FCT), amid rising international benchmark prices and adjustments by both the Nigerian National Petroleum Company Limited (NNPCL) and other marketers.
Most filling stations in Abuja, yesterday, were dispensing petrol at N955, with NNPCL retail outlets and independent marketers already reflecting the new price.
A few stations linked to the Dangote Refinery partnership, especially MRS, however, sold marginally lower at N885/litre, although there were indications that the ex-depot petrol price by Dangote Refinery moved to N858 per litre, from N820.
Sources at the refinery, however, said the refinery had yet to implement an upward review of the pump price. NNPCL, which had been accused by some marketers of underselling in terms of pricing, officially raised pump price at its retail outlets in the capital from N890 to N955, about a N65 hike.
Other stations that were previously selling at about N900 per litre moved their prices to NNPC’s benchmark of N955 per litre. Filling stations along major corridors such as the Kubwa Expressway and Airport Road were observed dispensing at the revised rate. Similar price increases were witnessed across the northern states.
The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) revealed that off-take from local refineries per day stands at about 15 million litres, while about 35 million litres were supplied from across depots in May.
In June alone, 455.2 million litres of PMS were trucked out from refineries, while depots accounted for 985.6 million litres (18.55 per cent increase from the 1.22 billion litres recorded in May).
Petrol pricing in Nigeria remains vulnerable to fluctuations in global oil product benchmarks.
At the close of last week’s trading, the Platts benchmark price for gasoline neared about $979.75 per metric tonne (MT). With an added operational premium of $50, total landing costs could rise to $1,025.75/MT.
From July 22, landing has been moving upward. It was N848.18 per litre on July 22, moved to N857.29 the next day, before soaring to N890.98 on July 30.
The petrol price surge in Nigeria coincides with broader developments in the West African refined products market. According to the West Africa Weekly Refined Products Commentary, gasoline exports to the region have declined due to seasonal low demand during the rainy season, which typically runs from May to October.
A trader monitoring the Lome market told S&P: “We might see more product heading to Lome from Europe; freight could work soon,” highlighting a potential rebound in imports if freight conditions become favourable.
Meanwhile, the market is also keeping a close watch on a recent gasoline export ban by Russia, announced on July 28. Moscow said the temporary ban was intended to maintain internal supply stability amid high domestic demand, especially during peak agricultural activity.
While the diesel (gasoil) segment of the West African market remains strong, S&P noted that demand had been relatively muted. Traders say diesel consumption typically drops during the rainy season, when hydroelectric power generation reduces the need for diesel-powered generators.
The Guardian
