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Fresh concerns have emerged over the rising cost of petrol after the pump price of Premium Motor Spirit (PMS) increased from N1,205 to N1,310 per litre, fuelling projections that it could soon hit N1,500 per litre.
The latest increase comes despite a decline in global crude oil prices, highlighting the growing influence of domestic market conditions on fuel pricing in Nigeria.
Checks showed that MRS raised its retail price to N1,310 per litre in Lagos and surrounding areas, while several other marketers adjusted their pump prices to between N1,315 and over N1,400 per litre.
Industry analysts said the disconnect between falling international crude prices and rising domestic petrol prices reflects the impact of local refining costs, supply dynamics, logistics and exchange rate pressures.
According to OilPrice.com, Brent crude traded at $88.10 per barrel after dropping 0.47 per cent, while West Texas Intermediate (WTI) declined 0.16 per cent to $83.40 per barrel. The OPEC basket, however, stood at $87.31 per barrel.
Despite the softer crude market, depot prices across Nigeria remained high. The Daily Depot Price Intelligence Report for August 28 showed Warri recording the highest PMS depot price at N1,217 per litre, followed by Port Harcourt at N1,214, Calabar at N1,204 and Lagos at N1,202 per litre.
The report showed that Warri depots, including Matrix, Liquid Bulk, Masters, Sigmund and TSL, sold petrol between N1,210 and N1,217 per litre, while Aiteo and Dangote depots in Lagos sold at about N1,200 per litre.
Analysts explained that petrol prices no longer move in tandem with international crude oil prices because several other factors now determine local costs. These include refining margins, exchange rates, freight charges, storage costs, financing expenses, product availability and competition among suppliers.
They also noted that the increasing supply of locally refined petroleum products is reshaping Nigeria's downstream market, reducing the direct influence of global crude price movements on domestic pump prices.
The rising depot and retail prices are expected to increase transportation and logistics costs, with possible knock-on effects on food prices and inflation if marketers continue to pass higher costs on to consumers.
However, experts believe stronger competition among local refiners and marketers could help moderate future price increases if supply improves.
The latest trend underscores the changing dynamics of Nigeria's deregulated fuel market, where domestic supply, refining capacity and operating costs are becoming the major determinants of petrol prices rather than crude oil prices alone.
