Petrol price rises to N935 in Lagos

Petrol marketers across Lagos have increased pump prices to between N925 and N935 per litre, citing rising landing costs, supply constraints, and currency-related policy delays. The price hike follows the decision by Dangote Refinery to stop selling petrol in naira and ongoing negotiations over the naira-for-crude policy.

Last Monday, the landing cost of petrol jumped to N843.28 per litre from N797 per litre recorded a fortnight earlier, adding N46 per litre to the cost. Major filling stations such as TotalEnergies and MRS adjusted their pump 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 a rise in international petroleum prices. The transition from winter to summer-grade gasoline in Europe has led to higher costs, exacerbated by supply constraints as arbitrage flows into Europe remain unprofitable. Stocks at the Amsterdam-Rotterdam-Antwerp (ARA) hub, a critical global oil and biofuel trading centre, have dropped to a 12-week low.

MEMAN further highlighted that seasonal refinery maintenance across Europe, along with a recent fire at the Falconara refinery in Italy, has restricted supply, leading to increased market volatility. Despite the relatively stable foreign exchange rate, landing costs remain highly sensitive to multiple factors, fluctuating several times within a single day.

The Nation reported the association suggested that savings could be achieved through improved logistics and access to foreign exchange. It advised marketers to reduce costs by avoiding ship-to-ship transfers where possible and opting for larger cargo deliveries.

The landing cost of petrol into Apapa/ASPM Jetty is calculated based on several factors, including exchange rates, financing charges at 32 per cent per annum for 30 days, as well as regulatory fees from the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Additional charges such as berthage, mooring, cargo dues, contingency fees, and VAT also contribute to the final price at the pump.