Marketers Increase Petrol Prices Amid High Crude Oil Prices Globally
- Major oil marketers have announced an increase in petrol prices as global crude oil prices soar
- There are indications that the international benchmark oil, Brent Crude, rose above $80 per barrel
- The oil marketers disclosed that they adjusted their prices to hedge against volatility losses
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Petrol stations owned by prominent oil marketers hiked their prices on Tuesday, January 14, 2024, to reflect a new price regime amid rising crude oil prices, which saw Brent Crude soar above $80 per barrel.
Checks show that major marketers have adjusted their pump prices, reflecting the upward movement in crude oil costs.
Source: Getty Images
Petrol ex-depot prices rise
Investigations revealed that major marketers such as 11 plc, which operates the Mobil franchise, adjusted its pump prices to N970 per litre from N950 - the same as Petrocam.
According to reports, petrol ex-depot prices moved from N912 to N950 per litre at the Apapa depot.
The Sun reports that sources confirmed the N950 per litre is for oil stock as they do not know what will happen to crude oil prices in the coming days.
The sources said the depots guard against price fluctuations to protect their investments.
Marketers explain the reason for petrol price increases
Billy Gillis-Harry, the national president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), disclosed that price changes are expected due to market dynamics and deregulation.
He said the price movements of petroleum products would continue into the next year before stabilising.
The PETROAN boss confirmed building an N50,000bpd refinery and said marketers are experiencing price fluctuations due to global crude oil prices and that the fuel will drop when crude oil prices dip.
He revealed that all oil marketers try to avoid losses as every cost must be passed on to the business.
Experts believe crude oil prices could hit $85 per barrel by the end of this year's first quarter.
"I think Nigerians should brace up for more increases as crude oil prices soar globally," energy policy analyst Adeola Yusuf said.
He stated that oil prices are bound to change due to geopolitics, especially in the Middle East.
"Oil prices are susceptible to geopolitical tensions such as the ones happening in the Middle East and the ban of Russian oil by the US, " he said.
Fuel prices of various filling stations emerge
Legit.ng earlier reported that the average price for Premium Motor Spirit (PMS), popularly known as petrol, ranges between N900 and N1,070 per litre at various filling stations nationwide.
There are now strong indications that the prices will not remain that way for a very long time amid a rise in global oil prices.
In July 2023, the federal government boldly decided to fully deregulate the downstream sector.
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Source: Legit.ng
