By Udeme Akpan, Energy Editor
Oil marketers have increased the pump price of Premium Motor Spirit (PMS), also known as petrol, to N1,100 per litre from N1,000 per litre, following the rise in crude oil prices to over $100 per barrel amid the conflict between the United States and Iran.
While the prices of Brent and Nigeria’s Bonny Light rose to $92.06 per barrel and $90 per barrel from $85 per barrel and $86 per barrel, respectively, the price of Murban crude surged to $102.2 per barrel from $95 per barrel yesterday.
Consequently, in a notice to marketers, the Dangote Petroleum Refinery adjusted its gantry price to N995 per litre from N874 per litre, representing an increase of 14 per cent.
depot owners who buy from the refinery also adjusted their prices by a similar margin, forcing filling station operators to raise their retail prices to N1,100 per litre and above, depending on location.
The checks also showed long queues in Lagos, Abuja, and other parts of Nigeria, as many filling stations shut their gates to motorists due to uncertainty in the market.
Reacting, in an interview with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Olajide Jeremiah, said.
“The Middle East conflict has impacted the domestic market, causing uncertainty and frequent price adjustments. More adjustments are expected in the coming weeks as crude oil continues to rise.”
On his part, Billy Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said: “The price of crude oil will continue to rise because the situation in the Middle East has not improved. Further increases in the prices of crude oil and petroleum products should be expected.
“We are entering a phase that requires calmness rather than panic. There is nothing to worry about. Panic buying would worsen the current situation. At PETROAN, we are determined to work with other stakeholders to ensure sustainable product supply.”
In its recent statement, the Dangote Petroleum Refinery also reassured Nigerians of its unwavering commitment to serving as a stabilising force amid recent shocks in the international oil market.
It stated: “The conflict in the Middle East has led to the shutdown of some refineries and cuts in refinery production across the world. This is leading to a global scarcity of petroleum products. China has banned the export of gasoline and diesel.
“The Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the many benefits of domestic refining.
“Furthermore, while we receive about five cargoes a month from NNPC, which we pay for in naira, these cargoes are priced at international market prices plus premium and fall short of the 13 cargoes required to support sales into Nigeria.
“We therefore procure foreign exchange at open market rates to pay for crude cargoes purchased from local and international traders.
“The high crude cost is compounded by the fact that Nigeria’s upstream producers have failed to supply crude oil to the refinery as required under the Petroleum Industry Act (PIA), forcing us to source a substantial portion through international traders who charge an additional premium.
“As a private enterprise operating in a deregulated environment, Dangote Petroleum Refinery has remained responsive and has made significant sacrifices by aligning pricing with market realities to ensure sustainability, particularly as it sources all its crude at prevailing international market prices, whether locally or internationally
“Selling below cost would undermine its ability to procure crude, sustain production, and guarantee uninterrupted supply to Nigerians.
“Despite these pressures, local refining at this scale continues to reduce exposure to international supply disruptions, moderate foreign exchange demand, and protect the country from severe shortages during periods of global instability.”
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