Nigerians are facing sharp increases in petrol prices as marketers raised pump prices far above the rise in crude oil costs, highlighting concerns over profiteering by local oil companies.
On Tuesday, petrol stations nationwide increased prices from an average of N750 per litre to N850, citing a rise in international crude oil prices from $64 to $68 per barrel. While crude prices rose by 6.2 percent, local petrol prices jumped 14.3 percent, more than double the increase in the main input cost.
The hike also affected gantry prices at refineries. At the Dangote Refinery, petrol rose from N699 per litre to N799 per litre, a 14.3 percent increase. Following the adjustment, retail outlets in Abuja, Lagos, and other cities increased pump prices. NNPC retail stations raised their prices from N815 to N835 per litre, while some independent marketers implemented steeper hikes. AYM Sharfa, for example, increased its price from N815 to N900 per litre.
Chief Chinedu Ukadike, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), justified the increases, blaming the rise in crude oil prices. “Crude oil price has increased. The refiners have also increased their price. Once your buying source increases, you will increase. Dangote has increased by over 110 naira,” he said.
Addressing questions about why pump prices were raised despite existing old stock, Ukadike explained, “Even if we sell our old stock, we can’t buy a new one at the old price. The margin is high. The buying rate and margin is high. The marketers have to find a way to see how they can continue to be in business.”
The steep local price increases, significantly higher than the international crude oil price adjustments, have drawn criticism from consumers and analysts, who accuse marketers of exploiting Nigerians amid persistent economic pressures.
