Oil marketers in Abuja have started to increase fuel pump prices in Abuja to above N900 per litre. At NIPCO it now sells N 935 per litre, OPTIMA N920,
A station manager at NIPCO said some stations u started changing their pump prices this Tuesday afternoon but this evening words went round that all stations should start selling above N900.
The expected increase is due to fresh United States sanctions on Iran, which have disrupted the global oil supply, leading to a rise in crude oil prices. Nigerians may pay more to buy petrol soon
Domestically, Dangote Refinery’s decision to halt the sale of petroleum products in naira has further exposed the Nigerian market to shifting global prices. READ ALSO Marketers change petrol prices, threaten to sell fuel in dollars over Dangote’sannouncement.
Fuel price is set to change In the international market, Brent crude, the benchmark for Nigeria’s oil, has risen to $72.16 per barrel, up from $71.75 per barrel on Thursday. The increase in oil prices follows the U.S. decision to impose new Iran-related sanctions, targeting entities including a Chinese ‘teapot’ refinery for purchasing Iranian crude. Iran, a major oil producer, pumps over three million barrels per day. Phil Flynn, senior analyst at Price Futures Group was quoted as saying: “We were looking for some kind of catalyst to move, and that was the ticket that pushed us back towards the high.”
The impact of rising crude oil prices could have been less severe if not for Dangote Refinery’s decision to temporarily halt the sale of petroleum products in naira. From January to March, there have been three price reductions by Explaining its decision to stop sales in naira, Dangote said it was necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.
Part of the statement added: “To date, our sales of petroleum products in Naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.” Dangote temporarily stopped the sale of petrol in naira Depots adjust prices Already, In Nigeria, the surge in crude prices has led to increased costs at fuel depots.
Petrol loading prices rose to N875 per litre on Thursday from N852 earlier in the day, according to data from BusinessDay. Major depots such as Matrix Warri, Zamson, Rainoil, Pinnacle Warri, and Sobaz adjusted their prices upwards. This marks a shift for Nigerian consumers, who had seen three price reductions by Dangote Refinery since January.
The refinery recently suspended sales of petroleum products in naira, citing challenges in aligning revenue with crude procurement costs, which are denominated in U.S. dollars. READ ALSO Motorists rush to filling station over new price concerns after Dangote stops selling in naira J.P. Morgan expects Brent prices to hover in the mid-to-high $70s. The adjustment in international oil prices means importation will be more expensive, and with Dangote no longer providing respite, fuel prices could return to above N900 per litre. Oil marketers deny opposing NNPC, Dangote petrol price
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