Fresh pressure is mounting on petrol prices as the estimated landing cost of Premium Motor Spirit (PMS) has climbed to N1,311.36 per litre, surpassing the N1,265 per litre gantry price of Dangote Petroleum Refinery by N46.36.

The development has raised fears of another increase in petrol pump prices as international crude oil prices continue to rise, with Brent crude trading at about $105 per barrel on Thursday.

The latest landing-cost estimate, contained in the Major Energy Marketers Association of Nigeria (MEMAN) report, stood at N1,311.36 per litre as of September 8, up from the 30-day average of N1,216.34.

The latest figure represents an increase of N95.02 per litre over the monthly average, reflecting the recent surge in international crude oil and refined petroleum product prices.

The widening difference between the international replacement cost and Dangote Refinery’s current gantry price could put renewed pressure on domestic petrol prices if the rise in crude oil prices persists.

Although Dangote Refinery has not announced any fresh adjustment to its PMS price, the prevailing market conditions have heightened concerns among motorists and other consumers over a possible increase.

Checks by the Nigerian Tribune in Lagos on Thursday showed that most filling stations had yet to significantly adjust their pump prices, with several outlets selling petrol between N1,290 and N1,310 per litre.

At some stations, however, prices were already higher.

A motorist, Mr Emma, said he purchased petrol at N1,330 per litre at Conoil, Ojota, Lagos, although he observed that some other major marketers had retained their existing prices.

“Mobil, Total, AP and Rainoil are still selling at the same prices,” a commercial driver who operates on the Lagos Island-Ikeja route said.

The development has also triggered concerns among motorists that a further rise in petrol prices could push up transportation and other living costs.

Industry watchers said sustained increases in crude oil and refined-product prices could eventually be reflected in domestic petrol prices, particularly if the gap between international replacement costs and local refinery prices continues to widen.

The latest development comes amid the surge in Brent crude above the $100 per barrel mark, increasing the cost of crude feedstock and imported refined products.

For motorists and other consumers, the key concern now is whether the rising PMS landing cost will translate into higher pump prices in the coming days.

While Dangote Refinery has yet to announce a new PMS price, continued pressure from the international market could make another upward price review increasingly likely, an industry expert said. (Nigerian Tribune)