Victor EzejaIn the aftermath of the recent suspension of the Naira-for-crude deal between Dangote Refinery and the Nigeria National Petroleum Company Limited (NNPC), the pump price of Premium Motor Spirit (PMS), popularly known as petrol, has risen to almost ₦1,000 per litre.
Prime Business Africa reports that the pump price of petrol has surged to between ₦930 and ₦970 per litre in parts of Lagos
Join our WhatsApp ChannelThis reflects an increase of ₦105 from from the previous price of ₦865 per litre.
Prime Business Africa’s findings on Sunday revealed that filling stations around Lagos have adjusted their pump prices from ₦865 per litre to between ₦930 and ₦970.
PBA also gathered that depot owners have increased their prices to between ₦895 and ₦900 per litre against ₦850 sold last week.
READ ALSO: Dangote Refinery Halts Sale Of Petrol In Naira: What Does This Mean For Nigerians?
This comes as the landing cost has reportedly increased to ₦885 per litre from ₦797 last week.
Prime Business Africa observed that an IBWAS filling station along Isolo road, Lagos was selling petrol at ₦940 per litre on Saturday. One of the dispensing staff, who didn’t want to be named, said the price had been adjusted since Friday.
Also, an AP filling station along Oshodi-Apapa Expressway was selling at ₦940 per litre on Sunday, against ₦870 fews days before.
It was gathered that other retail outlets in other parts of Lagos and Abuja have adjusted their pump prices.
This development, according to analysts, followed the recent announcement of temporary suspension of the sale of petroleum products in naira by Dangote Refinery.
READ ALSO: Why Dangote Refinery Is Right In Suspending Petroleum Products Sales In Naira – Expert
This came as talks about continuing the naira-for-crude deal between Dangote Refinery and NNPCL appeared to have failed.
While announcing the suspension, the 650,000 barrels per day capacity refinery stated that there was a mismatch between its sales proceeds and its crude oil purchase obligations, which it said are currently denominated in US dollars.
The announcement raised concerns about a possible hike in the price of petroleum products.
The Dangote refinery’s suspension of the sale of petroleum products in naira means marketers would have to source dollars before buying petrol from the facility.
Oil marketers and other industry stakeholders have raised concerns that the suspension of Naira-for-crude policy could put more pressure on the naira in the foreign exchange.
This is as some marketers have resorted to importation of the products.
Meanwhile, MRS filling stations, partner of Dangote Refinery, has increased petrol price to ₦930 in Lagos and ₦950 Abuja.
This is an increase of between N70 and N80 per litre from the old price of N860 and N880 per litre in Lagos and Abuja.
Experts have stated that halting the naira-for-crude deal might be a calculated attempt to reduce the influence of the Dangote Refinery, which had been accused of planning to monopolise the downstream sector.
Dangote Refinery had between December and February, slashed its ex-depot price a couple of times, forcing the price to go below ₦830, while the pump price reduced to ₦865.
Commenting on the development, economist and energy expert, Mr Kelvin Emmanuel, said: “One credible reason for the delay in bringing back the naira-for-crude initiative is because the marketers importing know that it’s the only leverage they have to stall Dangote from continually reducing the recommended retail price (rrp) and make it difficult for them to compete, believe me when I tell you that this was planned, and is achieved with active connivance.”
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
