Petrol prices in Lagos surged over the weekend, with pump prices rising to between N925 and N935 per litre.
According to The Nation, this increase follows a rise in the landing cost of petrol, the halt in Dangote Refinery’s naira-based sales, and delays in negotiations on the naira-for-crude policy.
As of last Monday, the landing cost of petrol climbed to N843.28 per litre, up from N797 per litre two weeks earlier, marking an increase of N46 per litre.
Filling stations such as TotalEnergies set prices at N935 per litre, while MRS outlets sold at N925.
According to the Major Energy Marketers Association of Nigeria (MEMAN), this price surge is largely due to fluctuations in international petroleum prices.
The transition from winter to summer-grade petrol in Europe has contributed to rising costs, alongside supply constraints caused by unprofitable arbitrage flows into Europe and declining stocks in the Amsterdam-Rotterdam-Antwerp (ARA) hub, a key global oil and biofuel market.
Additionally, refinery maintenance in Europe and a fire at Italy’s Falconara refinery have exacerbated supply shortages, leading to further price volatility.
Despite a relatively stable foreign exchange rate, the landing cost of petrol remains subject to multiple daily fluctuations.
MEMAN advised that cost reductions could be achieved through better negotiations, improved access to foreign exchange, and logistical efficiencies, such as minimizing ship-to-ship transfers and increasing cargo sizes.
The landing cost at Apapa/ASPM Jetty is influenced by various factors, including exchange rate movements, financing costs, regulatory charges, and port-related fees.zf
With petrol prices soaring, industry experts continue to monitor market trends and explore strategies to stabilize supply and reduce costs for consumers.
SOUECE: Opera