Despite NNPC Cut, Petrol Depot Prices Surge To N1,900 Per Litre

There are indications that domestic petroleum product prices could rise further as petrol depot prices surged across Lagos, Port Harcourt, Warri and Calabar on Friday, with several marketers in Port Harcourt raising their prices to N1,900 per litre, despite lower pump prices at some filling stations in Lagos.

NIPCO led the increases in Port Harcourt, raising its Premium Motor Spirit (PMS) price by N170 per litre to N1,900 from N1,730, while six other depots increased their prices by N150 to the same level.

The developments coincided with an increase in international crude oil prices, as Brent crude climbed to $104.50 per barrel from $104.28, while the US benchmark, West Texas Intermediate (WTI), rose to $91.73 from $91.49.

A review of depot prices showed that African Terminal, Ascon, Eterna, Gulf Treasure, Ibachem and Ibeto raised their petrol prices in Port Harcourt to N1,900 per litre from N1,750 each.

Duport and Integrated, however, increased their prices to N1,806 per litre from N1,750, representing an increase of N56 per litre.

In Lagos, Masters raised its petrol price to N1,350 per litre from N1,303, while Matrix increased its price to N1,360 from N1,330.

Sigmund and T.S.L raised their prices to N1,350 per litre from N1,300 each, while NIPCO increased its price to N1,350 from N1,326.

In Calabar, Matrix raised its price to N1,370 per litre from N1,315. In Warri, Keonamex, Matrix, Nepal and Parker increased their prices to N1,360 per litre from N1,315 each, while Optima raised its price to N1,360 from N1,330.

Pump Prices Vary

At the retail end, the NNPC Limited sold petrol at N1,360 per litre at its filling stations in Lagos and surrounding areas.

MRS Oil Nigeria Plc sold the product at N1,338 per litre, while 11 Plc sold at N1,338.80. Independent marketers charged between N1,368 and N1,400 per litre, depending on location.

Consequently, motorists patronising MRS and 11 Plc paid less than those buying from some independent marketers, whose prices reached N1,400 per litre.

The price differences highlight the divergent pricing trends across the supply chain, with depot prices rising in several locations even as some filling stations continued to sell below the rates charged by independent marketers.

Diesel Prices Climb

The diesel market also recorded significant increases in Warri, where Rain Oil and Matrix raised their Automotive Gas Oil (AGO) prices by N180 per litre to N1,900 from N1,720 each.

In Port Harcourt, Dangote increased its diesel price to N1,720 per litre from N1,702, while Masters raised its price to N1,825 from N1,788.

The increases could add to operating costs for manufacturers, transport operators and other businesses that rely on diesel for power generation and transportation, particularly if the higher prices persist.

Crude Oil Market Mixed

On the international market, the OPEC Basket rose to $109.50 per barrel from $108.59, while WTI Midland increased to $92.74 from $92.32.

Natural gas prices climbed to $3.235 from $3.168, but Murban crude fell to $108.50 per barrel from $110.49.

Among refined products, gasoline declined to $3.293 from $3.316, while heating oil dropped to $4.724 from $4.883. The Indian Basket rose to $121.10 per barrel from $117.63.

The mixed movements across international benchmarks indicate that domestic depot price increases should not be attributed solely to the day’s crude oil gains. Product replacement costs, supply conditions, transportation expenses and individual marketers’ pricing decisions may also influence local prices.

Commenting on the developments in an interview with Vanguard, the Chief Executive Officer of http://Petroleumprice.ng, Olatide Jeremiah, said: “Despite domestic issues and development in Nigeria, the downstream sector would continue to respond or react to developments at the global oil market.”

With petrol reaching N1,900 per litre at several Port Harcourt depots and diesel hitting the same level in Warri, the latest price movements underscore the pressures facing Nigeria’s downstream market and the continuing differences between wholesale and retail prices.