Nigerian oil companies raised their prices by 14.3%, while the price of crude oil increased by 6.2%.
By Abuja’s Obas Esiedesa
Due to marketers pushing retail prices well beyond the rate of increase in crude oil prices, Nigerians are currently struggling with disproportionate increases in gas prices at gas stations.
All gas stations abruptly raised their pump prices on Tuesday from an average of N750 per liter to N850 per liter, citing a comparable rise in the price of crude oil on the global market, which increased from an average of $64 per barrel to $68 on Monday.
The local oil businesses more than twice the rate of growth in their primary input cost, crude oil, as seen by the local retail price rising by 14.3 percent while the price of crude oil grew by 6.2 percent. The gantry price of gasoline at the Dangote Refinery increased by 14.3%, from N699 to N799 per litre, as a result of the increase in crude pricing.
Retail gas stations in Abuja, Lagos, and other regions of the nation increased their pump prices after the change.
While some marketers made more drastic increases, NNPC Retail outlets raised the price per litre from N815 to N835. For example, AYM Sharfa increased the price of its pump from N815 to N900 per litre.
Chief Chinedu Ukadike, National Public Relations Officer of the Independent Marketers Association of Nigeria (IPMAN), blamed the increase in pump prices on rising crude oil prices in an interview with Vanguard.
“The price of crude oil has increased,” he declared. Additionally, the refiners have raised their prices. You will rise once your purchasing source does. Dangote has gone up by more than 110 Naira.
He said, “When did the price of crude oil go up?” in response to the marketers’ decision to hike pump prices while still holding outdated inventory. It didn’t go up on the first day. Thus, it is how the firm operates. We are unable to purchase new stock at the previous price, even if we sell our old shares. There is a large margin. Both the margin and the buying rate are high.
“The marketers need to figure out how they can stay in business.”
