Many filling stations across the FCT have continued to increase the pump price of Premium Motor Spirit (PMS), popularly known as petrol. The latest adjustment followed an N85 increase in Dangote Petroleum Refinery's gantry price, from N1,265 to N1,350 per litre, amid a surge in global crude oil prices - a 6.7% increase that takes the refinery's wholesale price above the current petrol landing cost of N1,311 per litre.
Brent crude, the benchmark for Nigeria's oil, was trading at about $107.92/barrel, now $108.21. The implication: motorists could face higher prices in coming weeks, higher cost of transportation and more financial burden on households. NAN checks in Abuja on Sunday showed MRS retail outlets increased pump prices from N1,350 to N1,395/litre, NIPCO from N1,350 to N1,430, and Mobil from N1,350 to N1,400.
An MRS attendant said: 'We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher.' Dr Aliyu Ilias, economist and development expert, said the increase could worsen inflation and deepen economic hardship, translating into higher transportation and production costs, particularly for food: 'If you do not absorb them, they will show up in our next inflation figures...
This kind of change is not good for the economy at all.' Mr Owei Lakemfa, former Secretary-General of OATUU, said Nigeria must shield consumers from global oil price fluctuations: 'We have known that the conflict between the U.S. and Iran will affect the shipping of oil products... In basic economics, when you are close to the source of your products, you have advantages. If we produce oil in Nigeria, refining in Nigeria can not be the same as importing fuel.'
He warned Nigeria's downstream market has elements of oligopoly and monopoly: 'You can not allow any individual or group to dictate to the country - that is why you have regulatory agencies. The government is there to protect the state and the people... It can not just be that any time Iran attacks the U.S. or there is another conflict, the price goes up. We have to plan.' IPMAN National Publicity Secretary Chinedu Ukadike said marketers reviewed pump prices following Dangote refinery's series of adjustments, noting the frequent price changes were creating uncertainty as the cost of replacing products could change.
Source: dailytrust.com/breaking-petrol-hits-n1430-in-abuja-as-strait-of-hormuz-crisis-worsens