THE pump prices of Premium Motor Spirit (petrol) are nearing N1,400 per litre in many parts of the country as the United States and Iran continue to disagree over a ceasefire expected to lead to the reopening of the Strait of Hormuz.
News Point Nigeria reports that the lingering crisis in the Middle East, combined with the reported exit of the United Arab Emirates from the Organisation of the Petroleum Exporting Countries (OPEC) on Tuesday, has continued to push global oil prices upward, with direct consequences for fuel prices in Nigeria.
Brent crude, which traded at $105 per barrel on Monday, rose sharply to $118 per barrel by Wednesday.
As a result of the spike in crude prices, the Dangote Petroleum Refinery increased its petrol gantry price from N1,200 per litre to N1,275 per litre.
Price data obtained from Petroleumprice.ng and confirmation from an official of the Dangote refinery on Wednesday showed that the refinery adjusted its petrol loading price upward to N1,275 per litre, while coastal supply prices also rose to N1,215 per litre.
Another source familiar with the development disclosed that the refinery suspended its pro forma invoice entry process around 4 pm on Tuesday, disrupting the normal scheduling of supplies within its loading system.
According to the source, the suspension immediately halted both petrol and diesel sales to marketers.
The development comes as the Nigerian National Petroleum Company Limited (NNPC) also raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes.
According to a report by Oilprice.com, Nigeria appears to be benefiting from the ongoing US-Iran conflict through higher crude prices.
The report stated that the NNPC raised the price of its flagship crude grade, Bonny Light, by $6.13 per barrel for May-loading cargoes compared to April, while Forcados crude rose by $7.01 per barrel.
“Nigeria reaps the benefits of the Iran war. Nigeria’s national oil company NNPC has raised the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, hiking its flagship grade Bonny Light by a whopping $6.13 per barrel compared to April, while Forcados is up by $7.01 per barrel,” the report stated.
News Point Nigeria had earlier projected on Wednesday that the development could mean higher crude acquisition costs for the Dangote Petroleum Refinery, thereby leading to another increase in petrol prices across the country.
Checks showed that filling stations across Lagos and other South-West states quickly adjusted their pump prices upward on Wednesday, moving from an average of N1,250 per litre to above N1,300 per litre.
A survey conducted by this newspaper showed that filling stations in Lagos and Ogun states sold petrol at prices ranging between N1,315 and N1,350 per litre as of Wednesday.
At the Mowe/Ibafo axis of the Lagos-Ibadan Expressway, NNPC filling stations dispensed petrol at N1,315 per litre, while Mobil stations sold at N1,320 per litre.
The situation appeared worse in northern states and locations farther away from the Dangote refinery, where petrol prices reportedly climbed close to N1,400 per litre.
Residents of border communities in Ogun State also lamented that petrol prices in their areas were approaching N1,700 per litre, alleging that restrictions by the Federal Government on the supply of petroleum products to the communities had worsened the situation.