Fresh concerns as petrol nears N1,500/L

Concerns have arisen over another surge in the price of Premium Motor Spirit (PMS), commonly referred to as petrol, following the Dangote Petroleum Refinery's recent decision to raise its gantry price by N85 per litre. This 6.7 percent increase in the ex-gantry price of PMS, from N1,265 to N1,350 per litre, has brought the product close to the N1,500 per litre threshold in various regions of the country.

The latest adjustment has prompted a wave of price hikes from major filling station operators, leaving motorists throughout the nation paying between N1,395 and N1,460 per litre.

Industry observers fear that the situation could exacerbate the gap between petrol prices and consumers' purchasing power, especially among households and businesses that rely heavily on PMS for transportation and electricity generation. The escalating fuel costs are exacerbated by the ongoing tensions between the United States and Iran, which have contributed to a six-week high in Brent crude prices at $107 per barrel.

With the Brent crude settling at $104.61 per barrel, analysts predict that elevated fuel prices may persist for an extended period.

Consumers have expressed their dissatisfaction with the new petrol prices, which they feel place a significant burden on their livelihoods. Commercial bus drivers, in particular, cite weak cash flow in the region, making it challenging to adjust their fares to accommodate the rising fuel costs. Retailers adjust their pump prices in response to the new wholesale price, taking into account transportation, logistics, depot, and retail operating costs.

However, the overall trend is an upward adjustment in retail petrol prices following the increase in the ex-depot price.