The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has attributed the recent increase in fuel prices to a rise in the landing cost of petroleum products.
Recently, Nigerian National Petroleum Company Limited (NNPCL) retail outlets increased pump prices in Lagos and Abuja.
“What I can tell you is, once there is difficulty in landing products by NNPCL and the size of shock absorbing that they can do becomes overwhelming, they will certainly shed some of the loads,” PETROAN President Billy Gillis-Harris said on Channels Television’s The Morning Brief. “I think that’s what would have happened.”
NNPCL outlets in Lagos now sell a liter of petrol for ₦998, a ₦150 increase from the initial price of ₦855. In Abuja, the price rose to ₦1,030 from ₦897. Other filling stations in Lagos State sold fuel for ₦1,050.
Gillis-Harris emphasized that petrol prices will be determined by market forces. “The truth right now is that petrol prices are going to be determined by the forces of demand and supply. This does not mean that the prices will always be high.”
He noted that Nigeria’s dollar exchange value significantly impacts the cost of Premium Motor Spirit (PMS) due to the dollarized business operating in naira.
Gillis-Harris expressed optimism that the Dangote Refinery and other Nigerian refineries will provide relief for Nigerians. “This is what we thought that the Dangote Refinery and other refineries in Nigeria should come to the rescue.”
The recent price adjustment is the second in recent months, following the previous increase from ₦568 to ₦855.
