Petrol marketers in Lagos have raised pump prices to between N925 and N935 per litre, citing higher landing costs, supply issues, and delays in currency-related policies. The price increase follows Dangote Refinery’s decision to stop selling petrol in naira and ongoing discussions about the naira-for-crude policy.
Last Monday, the landing cost of petrol rose to N843.28 per litre from N797 two weeks earlier, adding N46 to the cost. Major stations like TotalEnergies and MRS have adjusted their prices to N935 and N925 per litre, respectively.
According to the latest bulletin from the Major Energy Marketers Association of Nigeria (MEMAN), the increase is driven by rising international petroleum prices. The shift from winter to summer-grade gasoline in Europe has led to higher costs, compounded by supply shortages as arbitrage flows into Europe have become unprofitable. Stocks at the key Amsterdam-Rotterdam-Antwerp (ARA) hub have dropped to a 12-week low.
MEMAN also pointed out that seasonal refinery maintenance across Europe, along with a recent fire at Italy’s Falconara refinery, has further restricted supply, contributing to market volatility. While the foreign exchange rate remains stable, landing costs remain highly volatile and fluctuate throughout the day.
The association suggested that improved logistics and better access to foreign exchange could help reduce costs. Marketers were advised to minimize ship-to-ship transfers and opt for larger cargo deliveries to save money.
The landing cost of petrol at Apapa/ASPM Jetty is influenced by factors such as exchange rates, financing charges (32% per annum for 30 days), and regulatory fees from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Additional costs like berthage, mooring, cargo dues, contingency fees, and VAT also contribute to the final price at the pump.
As petrol prices continue to climb, consumers and businesses are bracing for the wider economic impact of rising energy costs in Nigeria.