Oil marketers have explained that they are not to blame for the recent increase in petrol prices as queues reappeared at filling stations across Lagos, Ogun, Abuja, and Port Harcourt on Saturday.
Many stations remained closed as dealers monitored market changes to adjust their prices. Petrol prices have risen to between N1,050 and N1,150 per litre due to higher costs from the Dangote Petroleum Refinery and other depot owners.
The Dangote refinery increased its price from N899 to N955 per litre at its loading point on Friday, prompting filling stations to raise their prices. Some stations that sold at lower rates, such as N935 per litre, saw long queues as motorists rushed to buy fuel.
A major marketer, speaking anonymously, confirmed that dealers are cautious about selling at a loss and clarified that the price hike is due to rising crude oil prices, not scarcity.
Why Petrol Prices Are Rising
According to the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the increase in petrol prices is directly linked to rising global crude oil prices. PETROAN President Dr Billy Gillis-Harry highlighted that under the Petroleum Industry Act, petrol prices are now determined by market forces, and government regulation no longer applies.
Crude oil prices have risen to a four-month high, with Brent crude at $80.85 per barrel, WTI oil at $78.82 per barrel, and the OPEC basket at $81.72 per barrel. This surge follows new US sanctions on Russian oil, affecting global supply and costs.
Call for Action
To address the challenges, PETROAN has called for the privatisation of government-owned refineries, increased competition in the downstream sector, and better business support for retail outlet owners. This includes access to affordable financing and infrastructure improvements to help stabilise petrol prices.
At a recent Petroleum Industry Stakeholders’ Forum in Abuja, PETROAN emphasised the need for investment in local refineries, tackling smuggling, and prioritising crude oil access for Nigerian refineries. The association also praised President Bola Tinubu’s efforts to deregulate the sector and implement policies that encourage growth.
PETROAN has pledged to work with stakeholders to strengthen Nigeria’s petroleum sector and reduce the impact of rising costs on consumers.