Petrol marketers in Lagos have increased pump prices to between N925 and N935 per litre, marking a significant hike over the weekend. The surge comes as a response to the rising landing cost of petrol, which escalated from N797 per litre to N843.28 per litre within two weeks—an increase of N46 per litre.
This development follows the decision by Dangote Refinery to halt the sale of petrol in naira approximately two weeks ago and delays in concluding negotiations on the naira-for-crude policy. Major filling stations, including TotalEnergies and MRS, have already adjusted their pump prices to N935 and N925 per litre, respectively.
The Major Energy Marketers Association of Nigeria (MEMAN) attributed the rising landing costs to the surge in international petroleum prices, driven by the seasonal transition from winter to summer specification gasoline in Europe. This transition typically commands a premium, causing increased market volatility.
Additionally, supply constraints have emerged as arbitrage flows into Europe remain unprofitable, leading to a 12-week low in Amsterdam-Rotterdam-Antwerp (ARA) hub stocks. Seasonal refinery maintenance across Europe and a recent fire outbreak at Italy’s Falconara refinery have further tightened supply.
MEMAN noted that the exchange rate has remained relatively stable, but the landing cost is subject to frequent fluctuations due to various factors, including finance charges at 32% per annum for 30 days, and multiple statutory charges from agencies such as NIMASA and NMDPRA.
The Association suggested that cost savings could be achieved through better negotiation strategies, enhanced access to foreign exchange, and more efficient logistics, such as eliminating Ship-to-Ship (STS) transfers where possible.
As petrol prices continue to climb, motorists and commuters are feeling the pressure, while industry stakeholders advocate for measures to stabilize the landing cost and ensure consistent fuel availability.
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