Petrol prices are nearing N1,300 per litre in some parts of Nigeria as marketers continue to face rising product costs and uncertainty in the downstream oil market.

The development followed another increase in the price of petrol by Dangote Petroleum Refinery, which raised its gantry price from N1,185 to N1,200 per litre on August 26.

The latest adjustment came just five days after the refinery increased the price from N1,165 to N1,185 per litre, bringing the total increase to N35 per litre within less than a week.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the frequent price changes were making it difficult for marketers to plan their businesses.

He attributed the uncertainty to movements in international crude oil prices, exchange rate fluctuations and government policies affecting the petroleum sector.

Ukadike said petrol was already selling for between N1,250 and N1,300 per litre in some locations, warning that prices could remain unstable as long as crude prices and other market conditions continued to fluctuate.

According to him, independent marketers have little control over the prices they pay for petroleum products and must adjust their operations based on prevailing market conditions.

The latest increase has also raised questions because it occurred at a time when international crude oil prices were falling.

Reuters reported that Brent crude dropped to $88.43 per barrel on Tuesday, while West Texas Intermediate fell to $81.67 per barrel, representing a decline of about four per cent.

The movement in global oil prices came as investors assessed expanded United States sanctions against Iran and the possible impact of rising tensions between both countries on global crude supplies.

Ukadike warned that further escalation of the Iran-US tensions could contribute to additional volatility in the Nigerian petroleum market.

He said the rising cost of petrol was affecting both marketers and consumers, as higher product costs, transportation expenses, depot charges and other operating costs were eventually reflected in pump prices.

Other petroleum dealers under the Petroleum Products Retail Outlets Owners Association of Nigeria have also expressed concern over frequent changes in the prices of refined products.

They noted that unstable prices could expose marketers to losses, particularly when the cost of replacing their stock rises after products have already been sold at lower prices.

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