MRS filling stations have increased their petrol price to N1,400 per litre from N1,300 in Lagos and its environs, representing a N100 or 7.7 per cent increase.
Similarly, filling stations operated by NNPC Limited have raised their pump price to N1,375 per litre from N1,275, while some independent marketers have increased their prices to about N1,400 from N1,360 per litre.
The latest adjustments followed an increase in the gantry price of petrol by Dangote Petroleum Refinery to N1,350 per litre, reflecting the impact of higher crude oil prices and rising costs across the petroleum supply chain.
The development is expected to increase operating costs for transporters and businesses while putting additional pressure on commuters and households.
Commercial buses, taxis, tricycles and other petrol-powered vehicles are likely to face higher daily expenses, potentially prompting operators to increase fares.
Workers, students, traders and other commuters who rely on public transportation could feel the impact as higher fuel costs raise the cost of daily travel.
The increase could also affect the wider economy as higher transportation and logistics costs raise the cost of moving food, raw materials and finished products.
Distributors and retailers may pass the additional expenses on to consumers, potentially pushing up the prices of food and other essential goods.
Households that depend on petrol-powered generators are also likely to face higher electricity-generation costs, while small and medium-sized businesses could see their profit margins squeezed by rising fuel, transportation and power expenses.
Manufacturers, retailers, logistics operators, restaurants and other businesses that rely on fuel for production, distribution or backup power may be forced to review their operating costs and, in some cases, increase prices.
The development could further fuel inflationary pressure as higher energy and transportation costs feed into the prices of goods and services.
Speaking with Vanguard, the National President of the Oil and Gas Services Providers Association of Nigeria, Mazi Colman Obasi, attributed the immediate increase to the sharp rise in international crude oil prices, which has raised the cost of refined petroleum products and altered the economics of domestic fuel supply.
“With Nigeria’s downstream market largely deregulated, pump prices are increasingly influenced by international crude prices, refined-product costs, freight, exchange rates and other supply-chain expenses,” he said.
Obasi warned that petrol prices could come under further pressure if crude oil remains above $100 per barrel or rises further.
“For transporters, the immediate concern is the cost of keeping vehicles on the road. For commuters, it is higher fares.
“For households, it is increased spending on transportation, food and electricity and for businesses, it is rising logistics, production and energy costs.
“If the crude-price rally persists, the pressure could extend further across the Nigerian economy, deepening concerns over the cost of living and doing business,” he said.
Earlier, Executive Director of Spaces for Change, Victoria Ibezim-Ohaeri, said households were likely to face higher transportation and food costs as the increase in fuel prices filtered through the economy.
“For households, the most immediate concern is likely to be higher transportation and food costs. Higher fuel and logistics costs can raise the cost of moving people and goods, while households and businesses that rely on petrol- or diesel-powered generators may face additional energy expenses,” she said.
Ibezim-Ohaeri said the pressures could further reduce purchasing power, particularly for low- and middle-income households.
She added that businesses in manufacturing, agriculture, construction, retail and logistics were similarly exposed to higher energy, transportation and input costs.
“If the shock persists, firms may pass additional costs on to consumers, absorb lower profit margins, postpone investment or reduce employment,” she said.
According to her, a prolonged oil-price shock could constrain the recovery of the non-oil economy even as the oil sector benefits from higher crude prices.
“In the coming weeks, volatility is likely to remain the central concern. Continued conflict and disruption to major shipping routes could keep crude and refined petroleum prices elevated.
“Recent disruptions have already reduced oil flows through the Strait of Hormuz and contributed to higher shipping and fuel costs,” she said.
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