The price of Premium Motor Spirit (PMS), commonly known as petrol, is heading towards N1,500 per litre in Nigeria after pump prices increased from N1,205 to N1,310 per litre in some locations.
The increase came despite a decline in international crude oil prices, which fell from about $92 to $87.31 per barrel.
Checks by Sunday Vanguard showed that MRS, a major downstream oil marketer, raised its petrol price to N1,310 per litre from N1,205 in Lagos and surrounding areas. Other marketers also increased their prices to between N1,315 and above N1,400 per litre.
Analysts said the rising domestic petrol prices, despite weaker international crude prices, show that factors such as local supply, refining capacity, transportation, logistics, exchange rates and market conditions are playing a major role in determining pump prices.
Petrol depot prices also remained high. On August 28, Warri recorded the highest depot price at N1,217 per litre, followed by Port Harcourt at N1,214, Calabar at N1,204 and Lagos at N1,202.
In Lagos, both Aiteo and Dangote depots were listed at N1,200 per litre.
Experts noted that crude oil prices do not immediately or proportionately determine petrol prices because other costs—including refining margins, import parity, exchange rates, freight, storage, financing, taxes and competition among suppliers—also influence the final price.
The latest increase could further raise transportation and logistics costs and put additional pressure on food prices and inflation across Nigeria.
However, increasing competition among domestic refiners and petroleum suppliers could help prevent further price increases if alternative sources of petrol become more readily available.
The development indicates that Nigeria's petrol market is increasingly being influenced by domestic supply, refining capacity, logistics and market conditions, rather than international crude oil prices alone.
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