The price of Premium Motor Spirit (PMS), popularly known as petrol at the pump, has reportedly risen to between N935 and N950 per litre in parts of Lagos and its outskirts, up from the previous rate of N865 per litre.
Petrol marketers across the Lagos metropolis at the weekend raised the pump price of the commodity.
This is in response to the increase in the landing cost of petrol, the stoppage by Dangote Refinery of the sales of the commodity in naira about two weeks ago and the delay in conclusion of negotiation on the naira for crude policy.
Last Monday, the landing cost of the commodity rose to N843.28 per litre from a previous N797 per litre a forthnight ago.
This increase represents an addition of N46 to N60 per litre to the landing cost of petrol.
MRS filling stations, a partner of Dangote Refinery, has increased premium motor spirit price to N930 and N950 in Lagos and Abuja.
This means that the price of petrol has been increased between N70 and N80 per litre from the old price of N860 and N880 per litre in Lagos and Abuja.
The development comes as Dangote Refinery on March 19 announced that it has suspended the sale of petroleum products in Naira.
Similarly, other filling stations in Abuja have also adjusted their petrol pump price.
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According to the major Energy Marketers Association of Nigeria (MEMAN) latest report in its Bulletin, the increase in the landing cost of petrol is a result of the rise in international petroleum pricing in the past two weeks due to the transition from winter to summer specification gasoline (petrol) in Europe, which typically comes at a premium.
MEMAN explained that supply constraints have emerged as arbitrage flows into Europe remain unprofitable, and Amsterdam-Rotterdam-Antwerp (ARA) hub stocks have dropped to a 12-week low.
It added that seasonal refinery maintenance across Europe and a recent fire at the Falconara refinery in Italy have further restricted supply, adding to market tightness and price volatility.
The Association said the foreign exchange rate remained fairly stable, with minimal fluctuations observed over recent periods.
Therefore, the landing cost of petrol, being fundamentally influenced by these elements, is likely to change several times intra-day.
It advised that savings can be achieved through negotiations, access to foreign exchange, and logistics efficiencies, for example, by eliminating Ship to ship (STS) transfer where possible or receiving larger cargos.
MEMAN explained that the landing cost into Apapa/ASPM Jetty is calculated based on the following assumptions: exchange rate, finance charges at 32 per cent per annum for 30 days; STS and related charges; NIMASA charges at two per cent of local STS; NMDPRA at 0.5 per cent MDGIF; NPA and VAT charges covering towage, berthage/mooring, ship dues, cargo dues, contingency, fire coverage, agency fee; other costs at N2 per litre.
