A fresh increase in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, is looming as depot prices across major petroleum hubs have surged to as high as N1,290 per litre.
The latest development is being driven by rising depot prices and a renewed increase in international crude oil prices, raising concerns that marketers could soon adjust retail prices upward if the higher wholesale rates persist.
The mid-day depot price report for Tuesday showed significant price increases across Lagos, Calabar, Port Harcourt and Warri.
In Calabar, Mainland and Soroman depots increased their petrol prices by N87 per litre, from N1,203 to N1,290. Matrix also raised its price by N86 to N1,290, while Sobaz increased its rate by N80 to N1,285 per litre.
In Lagos, the Dangote Refinery raised its petrol price by N66 per litre, from N1,200 to N1,266. Pinnacle also increased its price from N1,201 to N1,266, while African Terminal and Integrated raised their rates by N67 to N1,268 per litre.
Some independent depots recorded further increases, with Masters raising its price by N75 to N1,285, while Liquid Bulk, Sigmund and T.S.L increased their prices by N63 to N1,278 per litre.
The depot price increases came as international crude oil prices strengthened amid renewed tensions in the Middle East.
Brent crude futures settled at about $90.49 per barrel on Tuesday, representing a 2.71 per cent increase following renewed military exchanges between the United States and Iran.
Higher global crude prices could raise the replacement cost of imported petroleum products while influencing the pricing decisions of domestic refiners and petroleum marketers.
Industry watchers said the combined impact of rising crude oil prices, depot costs, logistics expenses and distribution margins could put additional pressure on retail petrol prices.
The latest development comes barely days after concerns were raised over the widening disparity between international crude prices and domestic petrol depot prices.
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Checks showed that MRS, which receives direct supplies from the Dangote Refinery, sold petrol at N1,310 per litre, while several other marketers sold the product at prices ranging from N1,350 to N1,400 per litre.
A further increase in pump prices could raise transportation and logistics costs and increase operating expenses for businesses that depend on petrol and diesel to power their operations.
It could also worsen pressure on food prices, as higher fuel costs increase the cost of transporting agricultural produce and other essential goods across the country.
