Petrol Price Rises To N935 In Lagos

Fuel vendors throughout Lagos have raised pump prices to a range of N925 to N935 per litre, attributing the increase to escalating landing costs, limited supply, and delays in currency-related policies. This price adjustment comes after Dangote Refinery ceased selling petrol in naira and amid ongoing discussions regarding the naira-for-crude policy.

On the previous Monday, the landing cost of petrol surged to N843.28 per litre, up from N797 per litre noted two weeks prior, resulting in an additional N46 per litre expense. Prominent fuel stations like TotalEnergies and MRS revised their pump prices to N935 and N925 per litre, respectively.

Per the most recent report from the Major Energy Marketers Association of Nigeria (MEMAN), the price escalation is propelled by a spike in global petroleum prices. The shift from winter to summer-grade gasoline in Europe has driven up costs, worsened by supply limitations as arbitrage shipments to Europe remain unviable. Inventories at the Amsterdam-Rotterdam-Antwerp (ARA) hub, a vital worldwide trading center for oil and biofuels, have fallen to their lowest level in 12 weeks.

MEMAN also noted that seasonal maintenance at refineries across Europe, combined with a recent fire at Italy’s Falconara refinery, has constrained supply, contributing to heightened market instability. Despite a relatively steady foreign exchange rate, landing costs continue to be highly responsive to various factors, shifting multiple times within a single day.

The Nation stated that the association proposed cost savings could be realized through enhanced logistics and better access to foreign exchange. It recommended that marketers cut expenses by minimizing ship-to-ship transfers when feasible and choosing larger cargo shipments.

The landing cost of petrol at the Apapa/ASPM Jetty is determined by multiple elements, including exchange rates, financing fees at 32 per cent annually for 30 days, and regulatory charges imposed by the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Further costs like berthage, mooring, cargo dues, contingency fees, and VAT also factor into the ultimate pump price.
As petrol prices keep climbing, consumers and enterprises are preparing for the wider economic consequences of the cost surge within Nigeria’s energy sector.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli