The cost of loading Premium Motor Spirit (PMS) and other refined petroleum products at depots experienced a significant increase on Monday, driven by rising crude oil prices.

Reports indicate that marketers raised depot prices for petrol and diesel by an average of N43 or 4.74%, following Brent crude's climb to $79.76 per barrel on Sunday. This price hike is likely to result in higher pump prices nationwide as filling stations adjust to reflect the increased costs.

An analysis of depot price movements revealed notable increases across various depots:

• Swift Depot: Increased loading price to N950 per litre from N907 last Friday.
• Wosbab Depot: Raised prices to N950 from N909.
• Sahara Depot: Adjusted prices to N950, up from N910.
• Shellplux Depot: Increased to N960 from N908.
• Chipet Depot: Set prices at N960 per litre, up from N908.
• Nipco Depot: Raised prices by N38, from N912 to N950.
• Matrix Warri Depot: Adjusted from N925 to N945 per litre.

Marketers sourcing products from the Dangote Refinery are now reselling at N923 per litre, despite picking products at N899 per litre.

Diesel Price Hikes

Similar increases were recorded for diesel (Automotive Gas Oil, AGO):

• Stockgap Depot: Raised prices from N1,080 to N1,150.
• Ibeto Depot: Increased to N1,150, up from N1,050.
• Sahara Depot: Adjusted prices from N1,045 to N1,150.
• Nipco Depot: Increased to N1,150 from N1,120.
• Optima Depot: Approved a N72 increase, now selling at N1,120 per litre.

The average increase in PMS depot prices ranges between 7-10%, while AGO prices surged by 5-10%, depending on the depot and location.

Oil and gas experts have attributed the price surge to rising Brent crude costs, a major determinant in refining petroleum products.

Olatide Jeremiah, CEO of petroleumprice.ng, noted, “As Brent crude neared $80, depot prices began to rise selectively, particularly in Lagos. Further increases by importers are expected, as the refining process is heavily influenced by crude prices.”

Marketer Bayo Adelaja warned of continued price fluctuations, stating, “Depot rates have escalated sharply, directly impacting pump prices. Consumers should brace for more changes in the coming weeks.”

Impact and Outlook

With depot rates showing no signs of stabilizing, consumers may face higher fuel costs in the near future. Experts emphasize the need for sustainable strategies to cushion the impact on both consumers and the economy.