Connect with us

News

Petrol Price Hike: ‘Blame Dangote, Global Crude Costs’ – Marketers

Published

on

Petrol Price Dangote Marketers
  • Oil marketers deny responsibility for rising petrol prices.
  • Dangote Refinery increases petrol price to ₦955 per litre.
  • Global crude oil costs push domestic PMS prices higher.

Oil marketers in Nigeria have dissociated themselves from the recent hike in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, attributing the increase to rising global crude oil prices and adjustments by depot owners, including the Dangote Petroleum Refinery.

EDITOR’S PICKS 

EKO HOT BLOG reports that reports indicate that petrol prices now range between ₦1,050 and ₦1,150 per litre, depending on the location, with long queues re-emerging at filling stations in cities like Lagos, Abuja, and Port Harcourt. Many stations have remained closed, fueling concerns among consumers.

On Friday, the Dangote Petroleum Refinery increased its petrol price from ₦899 to ₦955 per litre. This adjustment prompted retail outlets to modify their pump prices, with some temporarily shutting operations to monitor market dynamics.

“There is no scarcity of the product,” a major marketer told The Punch under anonymity, explaining that dealers are cautious to avoid losses amid fluctuating costs.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) linked the rising domestic cost of petrol to international crude oil price hikes. PETROAN President Billy Gillis-Harry noted that Brent crude is trading at $80.85 per barrel, with the OPEC basket at $81.72 per barrel.

Gillis-Harry further explained that recent U.S. sanctions on Russian oil had driven crude prices to a four-month high, significantly influencing PMS prices in Nigeria.

Market Forces at Play

The Petroleum Industry Act (PIA) has placed petrol pricing under the control of market forces. “Our selling rate reflects our buying rate. This increase is driven by external factors, and marketers should not be blamed,” Gillis-Harry said.

He called on the government to privatize refineries and enhance competition in the downstream sector to stabilize prices. “Privatisation will improve efficiency, reduce the financial burden on the government, and benefit Nigerian consumers,” he added.

PETROAN’s Recommendations

At the Petroleum Industry Stakeholders’ Forum in Abuja, PETROAN proposed strategies to stabilize the sector:

  • Privatisation of refineries to boost efficiency and cut costs.
  • Infrastructure development to address distribution challenges.
  • Enhanced monitoring of downstream operations.
  • Strengthened efforts to combat fuel smuggling across borders.
  • Prioritization of crude supply to local refineries for domestic refining.

The marketers urged the Federal Government to provide affordable financing and improve infrastructure to reduce operational costs and make petrol more affordable.

Petrol Price Dangote Marketers

Petrol Price Dangote Marketers

Commending President Bola Tinubu for deregulating the petroleum sector and unifying exchange rates, Gillis-Harry said these policies had unlocked opportunities for growth and sustainability in the industry.

FURTHER READING




Advertise or Publish a Story on EkoHot Blog:

Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.

Citizen journalists will receive a token as data incentive.

Call or Whatsapp: 0803 561 7233, 0703 414 5611




 

 

 


DISCLAIMER: Opinion articles are solely the responsibility of the author and does not necessarily reflect the views of the publishers Of  EKO HOT BLOG

For publication of your News Contents, articles, Videos or any other News Worthy Materials, please send to [email protected]

For Advert and other info, you can call 08035617233 or send a WhatsApp Message to 08035617233.

Please drop your comments

Copyright © Ekohotblog

MGID