Some filling stations across Nigeria shut their gates on Thursday following fresh petrol price speculation. Total, Emedab, and a few others stopped sales as fears of another pump price increase spread. However, many stations in Abuja continued selling petrol between N1,155 and N1,299 per litre.
The development came despite weeks of falling fuel prices that had given motorists some relief. Naturally, the sudden closures sparked fresh concerns among Nigerians already battling high transport and living costs.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) made an appeal to marketers. The association said genuine marketers should not shut their stations because of price rumours. Speaking on the situation, the association’s National President, Billy Gillis-Harry, said,
“It is not possible for a genuine petrol retailer to shut a station over price speculation, because price can change to their disfavor. However, we are going to monitor the situation.”
His comments suggest the association believes some closures may not reflect normal business practice. Even so, PETROAN said it will closely watch events across the country.
The latest fears followed another jump in global crude oil prices. Oil prices climbed after renewed tensions between the United States and Iran. US President Donald Trump announced that the ceasefire between his country and Iran had ended. As a result, Brent crude rose above $77 per barrel, while West Texas Intermediate reached about $73 per barrel.
Shortly after, Nigerian depot owners increased diesel prices by about three percent to N1,450 per litre. Although petrol pump prices remained unchanged on Thursday, many traders feared that higher global oil prices could eventually affect local fuel costs.
Despite the uncertainty, competition in Nigeria’s downstream sector remains strong. Retail petrol prices had dropped by at least N125 per litre over the past three to four weeks, according to the Independent Petroleum Marketers Association of Nigeria. In addition, Dangote Refinery recently announced free delivery of petrol priced at N1,075 per litre across five states and the Federal Capital Territory.
Therefore, Nigerians will now watch closely to see whether the current speculation leads to another nationwide petrol price increase or fades without affecting pump prices.
