In Lagos State, motorists and commuters are facing higher transportation costs following a rise in petrol prices, which now sell for between N1,250 and N1,350 per litre at filling stations.
Therefore , reviews on Sunday indicates a growing concern among road users as the increase, caused by global supply pressures and domestic price adjustments, continues to influence transportation expenses
However, the recent rise follows another upward review of petrol prices by the Dangote Petroleum Refinery, which raised the gantry price of petrol to N1,175 per litre from N995 earlier in the week.
In addition, the change represents an increase of N180, about 18.1 per cent within three days, marking the refinery’s third price review within the week and prompting swift adjustments across the downstream market.
The increase was attributed partly to United States-Israeli attacks and the instability has made many oil tankers to reroute from traditional shipping lanes, pushing global freight costs up by roughly 40 per cent, according to market data from the Baltic Exchange.
Also, the international oil prices have risen, with Brent crude approaching 99 dollars per barrel, while the naira trades at about N1,650 to the dollar, factors analysts say are contributing to higher domestic fuel prices.
The emergence of the Dangote refinery, Nigeria continues to rely significantly on imported refined petroleum products.
Anthony Echiejina,the spokesperson for the refinery said the price adjustment reflects rising feedstock and logistics costs associated with developments in the global energy market.
Indeed,checks on Sunday show that retail prices have increased across several outlets in Lagos, with petrol selling between N1,200 and N1,350 per litre depending on location.
Moreover, major marketers have also adjusted their pump prices. Like MRS Oil Nigeria Plc and Matrix Energy Group sell petrol at about N1,250 per litre, while outlets of Ardova Plc (formerly AP) sell the product at about N1,300 per litre. Some independent stations charge slightly higher prices.
Thereby , NorthWest outlet in the Gbagada area sold petrol at about N1,250 per litre, while several other stations across the metropolis sold the product close to the N1,200 mark.
And other stations, including Heyden outlets in Iyana Ipaja and along the Oshodi–Abeokuta Expressway, also sold petrol at about N1,250 per litre
The rise in fuel prices has already led to higher transportation fares across Lagos, with commuters reporting increases of more than 30 per cent on several routes.
A commercial driver, Taiwo Shitu, said the rising cost of petrol had made daily operations more demanding.
The driver said: “We are the ones passengers blame for increasing fares, but they don’t realise how much we now spend on petrol.
“If we buy fuel at over N1,000 per litre, we have no option but to adjust fares.
Mr Moses Johnson, private car owner said fuel price increases often had wider economic implications.
“When fuel goes up, transport fares rise and the prices of goods follow immediately,” he said.
Dr Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE) said geopolitical tensions in the Middle East often lead to volatility in global oil markets.
According to Dr Yusuf, breakdowns in the Strait of Hormuz, through which roughly 20 per cent of global crude oil shipments pass daily, can quickly push up oil prices, shipping costs and insurance premiums worldwide.
He further noted that higher fuel prices could affect multiple sectors of the economy, particularly industries that rely heavily on energy and transportation.
Dr Yusuf concluded that “For manufacturers, the consequences can be significant, as many factories rely on diesel-powered generators due to electricity supply challenges”.
