Transport operators across Nigeria have expressed concern following the latest increase in petrol price by the Dangote Petroleum Refinery to N1,175 per litre, the third adjustment recorded within one week.
The new ex-depot price, raised from N995 per litre, is expected to have immediate implications for the transport sector, which relies heavily on Premium Motor Spirit (PMS) for daily operations.
Commercial drivers and transport union members say the development may compel them to review transport fares in order to cope with rising fuel costs.
According to several operators, petrol accounts for a significant portion of operational expenses in the road transport industry.
A commercial driver operating within the Abuja metropolis said frequent fuel price changes make it difficult for transporters to maintain stable fares for passengers.
“With the new price, many drivers may not sustain current fares because fuel costs continue to rise,” he said.
Industry observers say depot price increases usually lead to higher pump prices at retail filling stations after marketers add transportation, storage and operational costs.
Energy analysts noted that pump prices could exceed N1,200 per litre in some parts of the country if marketers reflect the new ex-depot rate.
They added that any increase in transport fares could trigger a chain reaction across the economy, affecting the cost of goods distribution and food prices.
The price adjustment comes as the Nigerian National Petroleum Company Limited and other stakeholders continue efforts to stabilise fuel supply in the country following the removal of petrol subsidy.
Experts believe domestic refining operations at the Dangote Petroleum Refinery will eventually help improve fuel availability and reduce Nigeria’s reliance on imported petroleum products.
The refinery, owned by the Dangote Group and founded by industrialist Aliko Dangote, has a refining capacity of 650,000 barrels per day and is regarded as one of the largest refineries globally.
However, analysts say fuel prices may continue to fluctuate depending on global crude oil prices, exchange rate movements and other market forces.
