Abuja Fuel Stations Hike Petrol to N1,300/Litre After Dangote's Price Rises

Motorists in the Federal Capital Territory (FCT) are now contending with higher pump prices for Premium Motor Spirit (PMS), commonly known as petrol, as numerous filling stations have adjusted their rates upwards. This increment comes at a time when global crude oil prices have seen a decrease, dropping from $92 per barrel to $87.31 per barrel. Specifically, Brent crude registered at $88.10 per barrel, marking a 0.47 per cent reduction, while West Texas Intermediate (WTI) decreased by 0.16 per cent to $83.40 per barrel.

According to reports from the News Agency of Nigeria (NAN), the Dangote Refinery has incrementally raised its ex-depot price, also known as the gantry price, for petrol over the past week. The price moved from N1,165 per litre to N1,185, then to N1,200, and finally settled at N1,265. This most recent price revision signifies a N65 per litre jump from its earlier gantry price of N1,200. The effect of these changes is already visible in pump prices throughout the FCT.

A survey conducted by NAN on Sunday in Abuja confirmed that multiple retail outlets had revised their petrol prices upwards, compelling consumers to pay more for fuel. For instance, NAN noted that AY Shafa raised its pump price from N1,250 to N1,270 per litre. Similarly, Optima retail outlet saw its price climb from N1,260 to N1,300 per litre. The Nigerian National Petroleum Company (NNPC) also moved its price from N1,250 to N1,270 per litre.

Economist Samson Ogunjimi voiced his apprehension regarding the escalating financial strain placed on households and businesses due to the continuous rise in fuel costs. Ogunjimi described the current situation as “unbearable,” highlighting that numerous individuals are finding it challenging to manage the widespread impact on their daily existence. He urged the Federal Government to promptly intervene and stabilize fuel prices, thereby alleviating the significant economic load on Nigerian citizens.

Meanwhile, Chinedu Ukadike, the National Publicity Secretary for the Independent Petroleum Marketers Association of Nigeria (IPMAN), clarified that marketers adjusted their pump prices in response to several recent price changes initiated by the Dangote Refinery. Ukadike explained that it was unsustainable for marketers to sell petrol at rates lower than its replacement cost. He further stated that these frequent price fluctuations are introducing instability for both sellers and buyers, given that the cost of restocking petroleum products can shift considerably in a short timeframe.