Motorists and commuters groan as petrol reaches N1, 350 per litre

Motorists and commuters in Lagos are facing rising transportation costs following another increase in the pump price of petrol, which now sells for between N1,250 and N1,350 per liter at petrol stations.

A survey on Sunday showed growing concern among road users as the increase, driven largely by global supply pressures and domestic price adjustments, continues to impact transport spending.

The latest increase follows another upward revision in petrol prices by Dangote Oil Refinery, which increased the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,175 per liter from N995 earlier in the week.

The adjustment represents an increase of N180, about 18.1% in three days, marking the refinery’s third price revision in the week and prompting rapid adjustments across the downstream market.

Industry sources on Monday attributed the increase in part to rising geopolitical tensions in the Middle East, particularly the growing standoff between Israel and Iran, as well as attacks linked to Yemen’s Houthi movement in the Red Sea corridor.

According to market data from the Baltic Exchange, the instability has forced many oil tankers to deviate from traditional shipping routes, increasing global shipping costs by around 40%.

At the same time, international oil prices have risen, with Brent crude approaching $99 a barrel, while the Nigerian currency trades at around N1,650 to a dollar, factors which analysts say are contributing to rising domestic fuel prices.

However, with the emergence of the Dangote refinery, Nigeria continues to rely significantly on imported refined petroleum products.

Refinery spokesman Anthony Echiejina said the price adjustment reflects rising raw material and logistics costs associated with developments in the global energy market.

Checks revealed that retail prices have increased at several outlets in Lagos, with petrol selling between N1,200 and N1,350 per liter depending on the location. (NAN)