Petrol consumers in the Federal Capital Territory (FCT) are facing higher pump prices as several filling stations in Abuja have begun adjusting their rates upward.
The latest increase comes after Dangote Petroleum Refinery raised its gantry price by N85 per litre, moving it from N1,265 to N1,350. The development has been linked to the recent rise in international crude oil prices.
The adjustment represents a 6.7 per cent increase and places the refinery’s wholesale price above the reported petrol landing cost of N1,311 per litre.
At the time of the development, Brent crude, Nigeria’s key international oil benchmark, was trading around $108.21 per barrel, following an earlier level of about $107.92.
Filling Stations Increase Pump Prices
Checks in Abuja showed that a number of major petrol retailers had already increased their pump prices.
MRS outlets, which had been selling petrol at N1,350 per litre, moved their price to N1,395. NIPCO also raised its rate from N1,350 to N1,430 per litre, while Mobil outlets increased their price to N1,400 per litre.
An attendant at an MRS station, who requested anonymity, indicated that motorists could see another increase once newly purchased stock arrives.
The attendant explained that the station was still dispensing older stock at N1,395 per litre but expected the price of new supplies to be higher.
Economist Warns of Wider Economic Impact
Economist and development expert Dr Aliyu Ilias warned that another increase in petrol prices could place additional pressure on inflation and household finances.
He explained that higher fuel costs generally raise transportation expenses, which in turn affect the cost of producing and distributing food and other essential goods.
Ilias said the rising expenses could eventually be reflected in Nigeria’s inflation figures, adding that measures were needed to cushion consumers from the effect of the higher costs.
Calls for Protection of Consumers
Former Secretary-General of the Organisation of African Trade Union Unity, Owei Lakemfa, also expressed concern about the impact of international developments on domestic petrol prices.
Lakemfa argued that Nigeria, as an oil-producing country, should develop stronger economic and regulatory mechanisms to protect consumers from sudden movements in global crude prices.
He noted that geopolitical tensions involving major oil-producing and consuming nations could affect international oil prices, but maintained that such developments should not automatically result in corresponding increases in domestic fuel prices.
According to him, locally refined petroleum should provide Nigeria with an advantage over imported products because imports attract additional expenses such as shipping, insurance and labour costs.
Lakemfa also raised concerns about the structure of the downstream petroleum market, saying regulators should prevent excessive market influence by individual companies or groups.
He called on the Federal Government and relevant consumer protection bodies to strengthen oversight and take action against what he described as arbitrary price increases.
Marketers Explain Price Adjustments
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said petroleum marketers had adjusted their prices following repeated changes in the refinery’s pricing.
Ukadike noted that frequent changes in the cost of petrol were creating uncertainty for both sellers and consumers because the amount required to replace existing stock could change rapidly.
The latest developments mean motorists in Abuja may continue to face pressure at the pump as fuel marketers respond to changes in supply costs and international crude oil market conditions.
