Petrol prices have increased across Abuja, with independent petroleum marketers attributing the latest adjustment to repeated increases in the gantry price of Premium Motor Spirit, PMS, by the Dangote Refinery.
The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chief Chinedu Ukadike, said marketers had been forced to review their pump prices following a series of adjustments by the refinery over the past week.
According to him, the Dangote Refinery increased its gantry price from N1,165 per litre to N1,185 and subsequently to N1,200 per litre within seven days.
“Every time Dangote increases his price, our price will also rise,” Ukadike said, explaining that marketers could not continue to sell petrol below the replacement cost.
The latest adjustment has been reflected in pump prices across the Federal Capital Territory.
Checks by Vanguard on Thursday showed that NNPC Retail stations, which previously sold petrol at N1,250 per litre, had increased their price to N1,270.
TotalEnergies stations also raised their price from N1,250 to N1,275 per litre, while Bovas stations adjusted their pump price from N1,253 to about N1,275 per litre.
Ukadike said the frequent changes were creating uncertainty for both marketers and consumers, as the cost of replacing products could change significantly within a short period.
He, however, said petrol price fluctuations were not solely attributable to local refinery prices, noting that international crude oil prices, foreign exchange movements and geopolitical developments affecting global oil supplies also influenced the market.
The IPMAN spokesman stressed that volatility in petrol prices had wider implications for the economy because transportation costs directly affected the prices of goods and services.
He, however, expressed optimism that the Dangote Refinery’s free transportation initiative for petroleum marketers could help reduce distribution costs and eventually ease pump prices if sustained.
Ukadike said some trucks transporting products under the initiative had yet to arrive due to poor road conditions, but noted that more marketers were enrolling in the programme.
He also welcomed the inclusion of Imo and Anambra states in the initiative, describing the two states as important gateway markets in the South-East.
According to him, increased access to locally refined petroleum products would promote competition and reduce the financial burden on marketers arising from transportation costs and funds tied up in depots.
On the continued importation of petrol by some major marketers despite increased domestic refining capacity, Ukadike said imports could support deregulation and competition but questioned the rationale for importing products at prices higher than those of locally refined petrol.
“When the products that are being imported are higher than the ones Dangote is giving us, what is the essence of importing it, putting pressure on our dollar?” he asked.
He called for greater government support for domestic refineries, particularly improved access to crude oil, saying increased local refining would strengthen competition, reduce dependence on imports and could eventually position Nigeria to export refined petroleum products.
