Fuel Price May Increase As Depot Hikes Loading Price

Nigerians may soon face another round of fuel price increases as depot owners have raised their loading prices, citing the rising cost of crude oil. The development is expected to have a ripple effect on the prices of petroleum products, with filling stations likely to adjust their pump prices to reflect the higher costs of refined products.

According to industry sources, the price of crude oil has been on the rise, with Nigeria's Bonny Light crude oil reaching $80 per barrel, while Brent crude oil hit $79.76 per barrel on Sunday. This has led to an increase in the cost of refined products, including petrol, diesel, and kerosene.

Depot owners have already begun to adjust their prices, with some depots increasing their loading prices by as much as ₦43 per litre. For example, Swift depot, which was previously selling petrol at ₦907 per litre, has increased its price to ₦950 per litre. Wosbab Depot and Sahara Depot have also raised their prices to ₦950 per litre.

The increase in depot prices is expected to have a significant impact on the prices of petroleum products at filling stations. Industry experts predict that the prices of petrol, diesel, and kerosene may increase by as much as ₦10 to ₦20 per litre in the coming weeks.

"This is a serious development that will have far-reaching implications for the economy," said Mr. Tunji Oyebanji, a petroleum products marketer. "The increase in depot prices will lead to higher prices at filling stations, which will affect the cost of transportation, food, and other essential commodities."

The Nigerian National Petroleum Corporation (NNPC) has not commented on the development, but industry sources say that the corporation is working to mitigate the impact of the price increase on consumers.

The potential fuel price hike is coming at a time when Nigerians are still grappling with the effects of the previous price increase. The development is expected to add to the economic hardship faced by many Nigerians, who are already struggling to make ends meet.

As the situation continues to unfold, Nigerians are advised to prepare for the potential price hike and to take necessary steps to manage their fuel consumption. The government is also urged to take proactive measures to address the root causes of the price increase and to protect the interests of consumers.

The fuel price hike is a reminder of the volatility of the global oil market and the need for Nigeria to diversify its economy and reduce its dependence on oil. As the country navigates this challenging period, it is essential to prioritize the welfare of citizens and to take bold steps to address the economic challenges facing the nation.

https://tribuneonlineng.com/fuel-price-may-increase-as-depots-hike-loading-costs/amp/