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 showed that major marketers had adjusted their pump prices, reflecting the upward movement in crude oil costs.
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 was 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.
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 a 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.
He stated that oil prices are bound to change due to geopolitics, especially in the Middle East.
TimesNow.com.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.
Proofreading by Nkem Ikeke, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
