Fuel Prices Soar as Depots Raise Costs Amid Rising Crude Oil Prices
The loading cost of Premium Motor Spirit (petrol) and other refined petroleum products has risen sharply, with marketers hiking prices at depots by as much as ₦43 per litre. The increase, attributed to the rising cost of crude oil, threatens to push pump prices higher nationwide.
On Sunday, Brent crude, the global benchmark, reached $79.76 per barrel, setting the stage for the price surge. By Monday, depot operators across the country adjusted their rates, reflecting the pressure of climbing international oil prices.
Depot Prices Spike Nationwide
Data analysed on Monday revealed significant hikes across major depots. Swift Depot increased its petrol loading price from ₦907 to ₦950 per litre, while Sahara Depot followed suit, raising its price from ₦910 to ₦950. Other depots, including Shellplux and Chipet, raised their prices to ₦960 per litre, up from ₦908.
Even marketers sourcing directly from the Dangote Refinery reported price increases. Products picked at ₦899 per litre were resold to retailers for ₦923, underscoring the pervasive impact of the crude price rally.
Diesel prices also climbed. Stockgap Depot increased its rate from ₦1,080 to ₦1,150 per litre, and Nipco Depot raised its price to ₦1,150, up from ₦1,120. Across depots, diesel prices rose by an average of 5–10%, while petrol saw a similar surge of 7–10%.
Industry Experts Warn of More Hikes
Oil and gas expert Olatide Jeremiah expressed concern over the implications of the price adjustments. “With Brent crude nearing $80, depot prices have already begun to rise, and this is likely to cascade down to consumers. We may see further increases in pump prices, particularly for diesel,” he said.
Another marketer, Bayo Adelaja, echoed this sentiment, warning of imminent pump price adjustments. “Depot rates have escalated sharply, directly impacting pump prices. Consumers should brace for further fluctuations in the coming weeks,” Adelaja noted.
Ripple Effects on the Economy
The rising depot rates have amplified concerns over the cost of living and economic stability. As petrol and diesel prices rise, transport and production costs are expected to follow, exerting additional pressure on businesses and households.
The persistent volatility highlights the urgent need for long-term strategies to cushion consumers and the economy from the impacts of global oil price fluctuations. With depot rates showing no signs of stabilising, Nigerians are bracing for yet another wave of economic uncertainty.
