Nigerians are bracing for tough times as petrol prices hit N1,400 per litre

Nigerians may face tougher times, as higher fuel prices will soon lead to an increase in transport fares, although transport operators in some areas of the country are already implementing fare increases.

It is estimated that the increase in transport rates will likely affect the prices of other goods and services, as is usually the case.

The new pricing regime follows a fresh surge in global crude oil prices as Brent crude rose above $100 per barrel while US benchmark West Texas Intermediate (WTI) rose to $92.71 per barrel amid renewed tensions in the Middle East, triggering higher ex-depot and pump prices across the country.

New loading data obtained from petroleum marketers shows an increase in ex-depot prices in Lagos, Warri and Calabar. In Lagos, AA Rano increased its ex-depo price from N1,275 to N1,279 per litre, while African Terminal, Ascon, Gulf Treasure, Integrated and T.Time increased their prices to N1,275 per litre. However, EMADEB reduced the price from N1,278 to N1,274 per litre.

Dangote Refinery also resumed gantry loading of Premium Motor Spirit (PMS) in naira after a week-long suspension, increasing the ex-depo price from N1,075 to N1,215 per litre, representing an increase of 13.02 percent.

The refinery had stopped gantry and shore loading on July 15 after introducing a dollar-denominated pricing template for refined petroleum products, citing challenges in accessing sufficient crude oil under the Federal Government’s naira-to-crude oil arrangement.

The latest adjustment has pushed petrol pump prices to between N1,260 and N1,400 per liter in some areas of the country, prompting transport operators to review their rates.

In the Federal Capital Territory, commuters complained that rising transport costs were eating up a large part of their income, while commercial drivers said they had no choice but to adjust fares to reflect rising fuel costs.

Transport operators also began raising fares on some routes in Lagos, although competition among commercial bus operators limited overall fare increases.

In Ilorin, major marketers increased the pump price of petrol to between N1,255 and N1,305 per litre, while petrol was sold at about N1,350 in Kaduna and between N1,360 and N1,370 in Adamawa.

In Maiduguri, independent petrol stations are dispensing petrol between N1,370 and N1,390 per litre, while transport fares from Maiduguri to Kano have increased from N20,000 to N25,000.

However, transport rates remained relatively stable in Ibadan and Kano despite higher fuel prices, and operators said they were monitoring developments before reviewing rates.