Petrol prices have climbed sharply across Nigeria, with retail pump prices now reaching as high as N1,345 per litre, putting fresh pressure on motorists, transport operators, businesses and households. The latest increase represents a significant jump from prices of between N1,210 and N1,275 per litre recorded less than two weeks ago.

Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Abubakar Maigandi, and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) President, Billy Gillis-Harry, attributed the latest movement to rising supply costs and developments in the international oil market.

Petrol prices jump to N1,345/L across Nigeria

Petrol is currently selling for between N1,310 and N1,345 per litre in different locations, according to the report.

The increase comes at a time when motorists and businesses are already dealing with elevated transportation and operating costs.

The latest movement represents a sharp rise from the N1,210-N1,275 per litre range recorded less than two weeks earlier, increasing concerns about another round of higher costs across the economy.

IPMAN blames Iran-US conflict for fuel price hike

IPMAN President Abubakar Maigandi linked the latest petrol price increase to the ongoing conflict involving the United States and Iran.

According to Maigandi, geopolitical tensions can affect international oil prices, with changes in global crude oil markets eventually influencing petrol prices in Nigeria, according to a report by The Nigerian Tribune.

He explained that petrol prices could move either upward or downward depending on develop-ments in the international oil market.

The explanation highlights the exposure of Nigeria's downstream petroleum market to global en-ergy-market developments, despite the country's position as a major crude oil producer.

PETROAN points to rising supplier prices

While Maigandi focused on international developments, PETROAN President Billy Gillis-Harry placed greater emphasis on the prices charged by petroleum product suppliers.

He argued that filling stations cannot sell petrol below their acquisition cost and still cover ex-penses such as financing logistics services overheads and other operating costs.

In practical terms, higher wholesale acquisition costs eventually translate into higher pump prices for consumers.

Gillis-Harry therefore insisted that retailers are not arbitrarily setting higher prices, arguing that fill-ing stations are largely reflecting the cost at which they obtain petroleum products.

Higher petrol prices could push up transport costs

The latest increase could have significant implications for Nigeria's transport sector.

Transport operators facing higher fuel costs may come under pressure to increase fares to pro-tect their margins. This could affect commuters who already spend a substantial portion of their income on transportation.

Interstate transport operators and commercial drivers could also face higher operating expenses if the increase persists.

Businesses face fresh cost pressure

The impact could extend beyond motorists and transport operators. Businesses that rely on petrol-powered generators may face higher energy costs, while companies involved in distribution and logistics could see their operating expenses increase.

Higher transportation and distribution costs can eventually feed into the prices of food, manufactured goods and other consumer products as businesses attempt to recover additional expenses.

For small businesses, particularly those operating with tight profit margins, another sustained in-crease in petrol prices could further squeeze profitability.
What the new fuel price increase means for consumers

The movement from N1,210-N1,275 to N1,310-N1,345 per litre underscores the continuing volatility of petrol prices in Nigeria.

With marketers pointing to international market developments and supplier pricing as key factors, consumers may continue to experience fluctuations at filling stations. For households and businesses, the immediate concern is the potential knock-on effect on transportation, logistics, energy and the prices of everyday goods and services.

The latest increase therefore places renewed focus on the cost structure of Nigeria's downstream petroleum market and the factors determining what consumers ultimately pay at the pump.