New pump prices expected as Fuel prices increase by N20

• An vigor adept has warned that substance prices successful Nigeria could summation to N930 per litre implicit the naira-for-crude sales
• The impasse betwixt the national authorities and the Dangote Refinery has already led to an summation successful ex-depot prices for fuel
• The concern could worsen pursuing Dangote's determination to suspend the merchantability of petrol successful naira temporarily

Legit.ng writer Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

Petroleum marketers person said that petrol prices astatine the pump could emergence to astatine slightest N930 per litre crossed the country.

The proposition follows different summation successful the ex-depot terms of petroleum products by backstage depots.

Petrol prices expected to deed N930 Photo credit: Bloomberg/contributor
Source: Getty Images

Companies similar Pinnacle, AIPEC, Rainoil Lagos, and WOSBAB reported this latest terms adjustment.

BusinessDay reports that the ex-depot terms of petrol stood astatine an mean of N870 per litre connected Monday, an increment of much than N20 successful 1 week.

New substance prices expected

Jide Pratt, Chief Operating Officer of AIONA, commented connected the potential retail prices, stating:

“For premium centrifugal tone (PMS), it is astir N10 to N20 arsenic immoderate merchantability N880 for astir apt aged stock"Ideally, different N25 added to these prices volition beryllium the pump price."

Zarma Mustapha, Deputy President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the determination variations successful costs progressive successful distributing petroleum products.

He explained:

"You person further costs to origin into your margin, which alteration depending connected your location. For instance, successful Abuja, the proscription outgo per litre is astir N45.If you acquisition astatine N870 and adhd N45 for transport, the landing outgo successful Abuja becomes N915. Adding a borderline of N15 to N20 brings the last terms to astir N930 to N935. That’s fundamentally however the pricing dynamics work."

Dangote refinery temporarily suspends naira to crude agreement Photo credit: Bloomberg/contributor
Source: Getty Images

The impending terms hike comes amidst ongoing negotiations betwixt NNPC and the Dangote Refinery regarding the hold of their naira-for-crude income agreement, acceptable to expire this month.

Since October 2024, this statement has facilitated the merchantability of astir 40 cardinal litres of crude successful naira, with Dangote Refinery subsequently selling petrol and diesel domestically successful the section currency.

Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has advocated for the continuation of this arrangement, emphasising its affirmative interaction connected petrol prices and nationalist inflation.

He stated:

"Our presumption remains that we counsel the authorities against ending the experimentation excessively soon. The naira-for-crude sales should proceed for astatine slightest different six months to measure its impact."

Petrol presumption owners question assistance

Earlier, Legit.ng reported that Petrol presumption owners person called connected the national authorities to support fuel prices unchangeable for six months.

The markets said that existent terms instability is affecting their concern and creating marketplace uncertainty.

PETROAN besides expressed interest implicit important fiscal losses incurred by marketers owed to abrupt petrol terms revisions.

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Source: Legit.ng