A significant increase in fuel prices is looming in Nigeria as depot owners have raised the price of petrol to N950/litre. This development comes on the heels of rising crude oil prices, with Brent crude reaching $79.76 per barrel on Sunday.
The increase in depot prices is expected to trickle down to filling stations nationwide, potentially leading to higher pump prices for consumers. Already, some depots have adjusted their loading prices, with Swift Depot increasing its price from N907 to N950/litre and Wosbab Depot raising its price from N909 to N950/litre.
Other depots, including Sahara Depot, Shellplux, Nipco Depot, and Matrix Warri Depot, have also implemented price increases ranging from N38 to N72 per litre. The average increase in depot prices for petrol stands at approximately 7-10%, while AGO prices have surged by 5-10%, depending on the depot and location.
Industry experts predict that the price hike will have a ripple effect on the economy, potentially leading to increased costs for transportation, food, and other essential commodities. Olatide Jeremiah, an oil and gas expert, noted that the increase in depot prices is a direct result of the rising cost of crude oil, which is a major determining factor in the refining process.
Bayo Adelaja, another marketer, warned that consumers should expect further fluctuations in the coming weeks, citing the sharp escalation in depot rates. Despite the price hike, retail prices of petrol in the Federal Capital Territory, Abuja, remained unchanged as of Monday, selling between N935 and N1,100 per litre across filling stations.
