Petrol Prices May Rise Again as Depot Rates Climb to N1,290

Nigerians may soon face another increase in petrol prices as the cost of Premium Motor Spirit, commonly known as petrol, has risen sharply at major depots across the country. The latest development comes after depot prices climbed to as high as N1,290 per litre, putting fresh pressure on marketers and raising concerns that the increase could eventually be reflected at filling stations. According to Vanguard, the latest mid-day depot price report showed significant increases across major petroleum hubs in Lagos, Calabar, Port Harcourt and Warri. In Calabar, petrol prices reached N1,290 per litre at Mainland and Soroman depots, representing an increase of N87 from N1,203. Matrix also raised its price by N86 to N1,290, while Sobaz increased its rate by N80 to N1,285 per litre. The upward movement was also recorded in Lagos. Dangote Refinery increased its petrol price from N1,200 to N1,266 per litre, while Pinnacle moved from N1,201 to N1,266. African Terminal and Integrated also raised their prices by N67 to N1,268 per litre. Some independent depots recorded even higher increases. Masters raised its price by N75 to N1,285, while Liquid Bulk, Sigmund and T.S.L increased their prices by N63 to N1,278 per litre. The latest rise comes amid renewed increases in international crude oil prices, driven partly by tensions in the Middle East. Brent crude futures settled at about $90.49 per barrel on Tuesday after rising by 2.71 per cent following renewed military exchanges between the United States and Iran. Higher crude prices could affect the cost of petrol in Nigeria by increasing replacement costs and influencing the pricing decisions of refiners and petroleum marketers. Industry watchers have also pointed to logistics expenses and distribution margins as additional factors that could put pressure on retail petrol prices if the higher depot costs persist. The development comes only days after motorists faced concerns over a growing difference between domestic depot prices and international crude oil prices. Vanguard reported that MRS, which takes direct deliveries from the Dangote Refinery, was selling petrol at about N1,310 per litre, while several other filling stations were offering the product between N1,350 and N1,400 per litre. For consumers, another increase in petrol prices could have wider implications, particularly because fuel costs influence transportation, logistics and the prices of goods and services. However, the latest depot price increases do not automatically translate into an immediate nationwide pump-price adjustment. Marketers are expected to continue monitoring crude oil prices, depot costs and market conditions before deciding whether to adjust their retail prices. If the upward trend persists, Nigerians could face another round of higher petrol prices in the coming days.