The cost of Premium Motor Spirit (PMS), commonly known as petrol, is expected to rise significantly in the coming weeks as a result of a price hike implemented by depot owners. These increases, which range from 4.74% to 5.72%, are directly linked to the recent surge in crude oil prices, including Nigeria’s Bonny Light crude, which has seen its price jump from $73 per barrel to $80 per barrel over the past week.
Several depots across the country have already raised their prices in response to the global oil market fluctuations. Notably, Swift Depot, one of the leading suppliers of PMS, has increased its loading price from N907 per litre to N950 per litre, marking a substantial rise of N43 per litre. Similarly, Wosbab Depot has raised its price to N950 per litre from N909 per litre, while Sahara Depot has made a similar adjustment, bringing their price to N950 per litre from N910 per litre.
Another key player in the distribution of PMS, Shellplux Depot, has also adjusted its prices upwards, now charging N960 per litre, up from the previous N908 per litre. This increase in depot prices reflects the ongoing trend in the international oil market, where the rise in crude oil prices directly impacts the cost of refined petroleum products, including petrol.
The ripple effect of these price hikes is expected to reach consumers at the pump, as fuel retailers typically pass on the higher costs to customers. The impact of this increase will likely be felt by motorists across the country, as the price of petrol is a critical component in the cost of living and transportation for many Nigerians. With crude oil prices continuing to rise and no clear indication of a reversal, it is anticipated that the cost of PMS will continue to climb, putting further strain on consumers and potentially exacerbating inflationary pressures in the economy.
As this situation unfolds, it will be crucial to monitor developments in both the global oil market and domestic fuel distribution practices, as any further increases in crude oil prices could lead to even steeper hikes in petrol prices, affecting the broader Nigerian economy.
