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Fresh pressure is mounting on petrol prices as the estimated landing cost of Premium Motor Spirit (PMS) has risen to N1,311.36 per litre, exceeding Dangote Petroleum Refinery’s current gantry price of N1,265 by N46.36.
The development has raised concerns over a possible increase in pump prices as international crude oil prices continue to surge, with Brent crude trading at about $105 per barrel on Thursday.
According to the latest report by the Major Energy Marketers Association of Nigeria (MEMAN), the PMS landing cost stood at N1,311.36 per litre as of September 8, compared with a 30-day average of N1,216.34.
The latest figure represents a N95.02 increase over the monthly average, reflecting the recent rise in international crude oil and refined petroleum product prices.
The widening gap between the international replacement cost and Dangote Refinery’s gantry price could intensify pressure on domestic petrol prices if the surge in crude prices persists.
Dangote Refinery has not, however, announced any fresh adjustment to its PMS price.
Checks in Lagos on Thursday showed that most filling stations had yet to make significant changes to their pump prices, with several outlets selling petrol between N1,290 and N1,310 per litre.
Some stations, however, had already moved above that range.
A motorist identified as Emma said he bought petrol at N1,330 per litre at Conoil, Ojota, Lagos.
He, however, noted that some other major marketers had retained their existing prices.
“Mobil, Total, AP and Rainoil are still selling at the same prices,” a commercial driver operating on the Lagos Island-Ikeja route said.
Motorists and other consumers are increasingly concerned that another rise in petrol prices could trigger higher transportation costs and further increase the cost of goods and services.
Industry watchers said sustained increases in crude oil and refined-product prices could eventually be reflected in domestic pump prices, particularly if the gap between international replacement costs and local refinery prices continues to widen.
The latest development comes amid Brent crude’s rise above the $100-per-barrel threshold, which is increasing the cost of crude feedstock and imported refined products.
For consumers, the major concern is whether the rising landing cost will translate into higher petrol prices in the coming days.
Although Dangote Refinery has yet to announce a new PMS price, continued pressure from the international market could make another upward price review increasingly likely, an industry expert said.
