- The ex-depot price of petrol has increased again and could likely lead to higher pump prices at filling stations
- In the last few weeks, the rise in fuel costs has caused serious strain for Nigerians, particularly commercial drivers
- Most filling stations have yet to revert to the N650 petrol prices, and it seems the N700 per litre price will persist
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Filling stations across Nigeria may be forced to adjust their pump prices once more as the ex-depot price of petrol experiences a significant increase.
According to the Independent Petroleum Marketers (IPMAN), Premium Motor Spirit (PMS) or petrol has now increased to N710 per litre in private depots.
Photo credit: SSS
Source: Getty Images
Vanguard reports that some private depots in Lagos’ Satellite and Apapa areas are also selling for as high as N735 per litre.
The ex-depot price of petrol is the price at which depot owners sell petrol to retail outlets in Nigeria. It determines how much petrol stations sell to motorists.
Petrol prices to increase
Depot prices have become a concern for marketers, and this might force filling stations to set retail prices as high as N750 per litre or more.
Only the Nigerian National Petroleum Company Limited (NNPCL) sells petrol cheaper, at N610 and N568 per litre.
A marketer said:
“The major marketers purchase fuel at the NNPCL rate of N548 to N550 per liter and sell it to us at N705, with the cheapest price being N701 per liter.
“These marketers have filling stations in Lagos and other states, where they sell fuel at N610 to N620 per liter.
“IPMAN stations in Lagos are struggling because the price difference makes the market highly competitive.
“Our members outside Lagos are able to sell at higher prices, benefiting from the regional price variations.
“When we buy from these major marketers at N705 per liter, NUPENG charges us based on the number of liters purchased, and we add a transportation cost of N15 to our filling stations. Consequently, the pump price ranges from N740 to N750 per liter.”
Report shows states with highest, cheapest fuel prices
Earlier, Legit.ng revealed that Nigerians pay more to buy petrol once again across the country.
The report noted that the national retail average price for a litre of petrol was up to N701.24, with Kogi residents paying the highest.
Marketers have offered a ray of hope to Nigerians ahead of the Port Harcourt refinery operation and Dangote’s release of petroleum products.
Source: Legit.ng
