By CHIKA IZUORA, SIVOWAKU ABIODUN, OLUMIDE OJUOKAIYE
Petrol prices in Nigeria look set to rise after crude oil topped $100 a barrel, tightening supplies and pushing up landing costs, industry sources said Friday. Major depots are reporting dwindling stocks and marketers are holding talks to agree new retail rates.
However, industry bodies have urged caution against speculation while stakeholders assess the likely extent of any price adjustment.
LEADERSHIP findings showed that key marketing groups are in close conversations to determine price variations and actual selling price.
No group was able to make predictions as to how far the price adjustment could lead to.
According to Dr Billy Gillis-Harry, the the national president of PETROAN, an umbrella body that represents the owners and operators of filling stations and petroleum retail outlets across Nigeria, a meeting of the group with some stakeholders on Friday, has provided a little more insight as to how to adjust to the situation.
Gillis-Harry, said armchair prediction should not be used to evaluate the impact of the rise of crude oil in the international market.
Already queues built up in most petrol stations in Lagos as the pump price moved up to between N1,290 and N1, 300.
A major marketer confirmed to LEADERSHIP that it received a vessel of imported petrol on Thursday when the price of crude was below $100 a barrel.
The marketer said with the sudden rise in crude prices the price of its imported petrol would certainly be increased to be able to replace stock.
Both the marketer and Gillis-Harry said it is usually a marketing strategy to proposition prices in anticipation of any increase in price of crude.
Our source said that since the crude price has risen to $100 per barrel, landing cost would inflate domestic selling price of petrol and this may rob on the public.
“Depots are drying up and if import apathy continues then the price will escalate beyond the purchasing power of Nigerians” he warned.
Our team of reporters who monitored the situation observed that queues resurfaced in Lagos following overnight petrol pump price adjustment by marketers.
Motorists travelling along the Lagos-Ibadan Expressway inward Lagos are paying varying prices for Premium Motor Spirit (PMS), with pump prices differing from one community to another.
Checks along the corridor showed that independent marketers in Warewa, Arepo and Magboro are dispensing petrol between N1,200 and N1,300 per litre depending on the outlet and product availability.
