The surge in international crude oil prices above $100 per barrel is pushing up petrol prices across Nigeria, with major marketers raising pump prices and creating fresh pressure on transporters, commuters, households and businesses.
MRS filling stations have increased their petrol price to N1,400 per litre from N1,300, representing a N100, or 7.7 per cent, increase in Lagos and its environs.
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 N1,400 from about N1,360 per litre.
The latest increases followed the rise 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 raise transportation costs and household expenses, while increasing operating costs for businesses that depend on fuel for logistics, power generation and other activities.
For transporters, the increase translates into higher daily operating expenses. Commercial buses, taxis, tricycles and other petrol-powered vehicles may require higher fares to maintain their margins.
Checks by Vanguard showed that this could place additional pressure on commuters who already spend a significant portion of their income on transportation.
The checks showed that workers, students, traders and other Nigerians travelling daily to offices, schools, markets and business centres are likely to feel the impact first.
The increase could also spread through the wider economy as higher transportation costs raise the cost of moving food, raw materials and finished products.
Distributors and retailers may pass the additional logistics expenses to consumers, potentially increasing the prices of food and other essential goods.
Households that rely on petrol-powered generators are also likely to face higher electricity-generation costs.
For small and medium-sized enterprises, the combination of higher fuel, transportation and power costs could further squeeze profit margins.
