Oil Operators Give Reasons for Petrol Prices Above 1,000 Per Litre at Filling Stations

• Crude oil refiners in Nigeria have provided insight into the current rise in petrol prices across filling stations.
• The development comes despite the Dangote Refinery and Port Harcourt Refinery commencing production.
• The operators explained that the high petrol prices are due to the dollar exchange rate in the foreign exchange market

Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.

Refineries and stakeholders in Nigeria's downstream petroleum sector have shed light on the reasons why petrol prices remain above N1,000 per litre, despite the commencement of production at the Dangote and Port Harcourt Refineries.

Data from the Major Energies Marketers Association of Nigeria (MEMAN) on December 5, 2024, showed that the landing cost of a litre of imported petrol was N958.89, while petrol from the Dangote Refinery was priced at N970/litre.

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Fuel prices crash by over N100 as marketers speak of lifting Port Harcourt refinery petrol

Refined petrol from the Port Harcourt Refining Company reached N1,030/litre, underscoring the higher cost of locally refined products.

Why petrol prices is high?

Punch reports that Eche Idoko the Publicity Secretary of Crude Oil Refinery Owners Association of Nigeria (CORAN) lamented the impact of jetty fees and other charges being levied in dollars.

He said:

“Receiving and charging fees for domestically consumed commodities in dollars is a major challenge to trade and businesses, especially within the downstream sector.”

Idoko called on the Federal Government to stop charging in dollars while asking that the fees be reviewed to help reduce the cost of PMS locally.

An official of the Dangote refinery, who pleaded anonymity confirmed that the federal government charges local petrol in dollars and hope the rates can be in naira to bring about cheaper petrol.

Oil workers speaks on petrol prices

Earlier, Legit.ng reported that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) expressed concern that the price of petrol will remain high.

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Marketers begin direct petrol loading from Dangote Refinery, price below N1,000 per litre

PENGASSAN noted that the commencement of production by the Dangote and Port Harcourt Refineries will not have much effect on petrol prices since the exchange rate is still very high.

The group highlighted that the exchange rate plays a significant role in determining the pricing of petrol at filling stations.

Source: Legit.ng