Queues Return As Pump Prices Exceed ₦1,000/Litre (see new prices)

Oil marketers have distanced themselves from the recent surge in the pump prices of Premium Motor Spirit (PMS), commonly referred to as petrol, which followed price adjustments by the Dangote Petroleum Refinery and other depot operators.

Plateau News reports that the price hike has been attributed to the increasing cost of crude oil on the global market.

Over the weekend, long queues resurfaced at filling stations in major cities such as Lagos, Abuja, and Port Harcourt, with many outlets remaining closed. Depending on the location, petrol prices ranged from ₦1,050 to ₦1,150 per litre.

On Friday, the Dangote Refinery raised its PMS price from ₦899 to ₦955 per litre. As a result, many retail outlets adjusted their pump prices, while some temporarily closed to monitor market trends.

“There is no product scarcity. Rather, filling stations are closed because dealers are cautious about market developments and want to avoid incurring losses,” explained a major marketer who spoke anonymously to Punch.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) attributed the price hike to the rising cost of Brent crude, which recently traded at $80.85 per barrel, with the OPEC basket at $81.72 per barrel.

PETROAN President Billy Gillis-Harry highlighted that new sanctions imposed by the United States on Russian oil had driven crude oil prices to a four-month high.

“The upward trend in crude oil prices directly impacts the domestic cost of PMS,” he stated.

Under the Petroleum Industry Act (PIA), petrol prices are now determined by market dynamics.

“Our selling prices are reflective of our purchasing costs. It’s important not to blame dealers for the price hike, as this is driven by external factors,” Gillis-Harry explained.

He advocated for the privatisation of Nigeria’s refineries to increase competition in the downstream sector, which could help stabilise prices.

“Privatisation will enhance refinery efficiency, reduce government expenditure, and ultimately benefit consumers,” he added.

At the inaugural Petroleum Industry Stakeholders’ Forum in Abuja, PETROAN outlined strategies to address the challenges in the sector, including:

  • Privatisation of Refineries: To improve operations and reduce costs.
  • Infrastructure Development: To resolve bottlenecks in storage and distribution.
  • Combating Cross-Border Smuggling: To minimise fuel diversion to neighbouring countries.
  • Monitoring Frameworks: To strengthen oversight of downstream operations.
  • Crude Supply for Local Refineries: To prioritise domestic refining efforts.

The marketers urged the Federal Government to create a business-friendly environment by improving access to affordable financing and enhancing infrastructure. “These steps will help reduce operating costs and make petrol more affordable for Nigerians,” Gillis-Harry stated.

The association also praised President Bola Tinubu for fully deregulating the petroleum sector and unifying exchange rates, noting that these policies have unlocked new opportunities in the industry.

“These reforms are critical to fostering growth and ensuring the sector’s sustainability,” Gillis-Harry concluded.