Fresh concerns over rising fuel costs have emerged across Nigeria after the Dangote Petroleum Refinery raised its gantry price for Premium Motor Spirit (PMS), commonly known as petrol, to N995 per litre.
The latest adjustment represents a sharp increase of N221 within four days, as the refinery continues to respond to fluctuations in the global oil market and rising logistics costs.
A senior official at the refinery confirmed the development on Friday, noting that the new price took immediate effect.
The adjustment follows an earlier increase earlier this week when the refinery raised its ex-depot price from N774 to N874 per litre. With the latest revision, petrol from the refinery has climbed from N774 to N995 per litre in less than a week, marking a nearly 29 per cent jump.
Industry analysts say the increase is likely to trigger another round of hikes in retail pump prices nationwide, with motorists in some locations expected to pay above N1,050 per litre, depending on transportation costs and the margins added by marketers.
Checks on petroleumprice.ng indicated that the revised gantry price had already been reflected on the platform, signalling a shift in domestic pricing benchmarks within the downstream petroleum sector.
The price adjustment came shortly after a temporary suspension of petrol loading operations at the refinery, which had fueled speculation among marketers about an imminent price change.
Sources within the petroleum distribution chain said truck loading of petrol at the facility was halted at about 2:00 a.m. on Friday, leaving depot owners and bulk marketers uncertain about the refinery’s next pricing move.
Market participants observed that similar pauses in loading activities at the facility in the past have often preceded price revisions.
Officials of the refinery have maintained that its pricing structure is determined by prevailing market realities, including crude oil prices, shipping costs and operational expenses.
In a statement issued on Thursday, the refinery explained that petrol prices are not fixed arbitrarily but are regularly adjusted to reflect movements in the international oil market.
According to the company, Nigeria’s downstream petroleum sector is now fully deregulated, meaning petrol prices are largely influenced by global crude prices, foreign exchange dynamics and supply conditions.
The refinery also assured that it would continue to prioritise supply to the domestic market in order to shield Nigeria from potential disruptions linked to the ongoing tensions in the Middle East.
“The Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the key advantages of domestic refining,” the company said.
It added that the ongoing conflict in the Middle East has pushed global crude oil and freight prices sharply higher, with benchmark Brent crude rising by about 26 per cent to above $84 per barrel within a short period.
Despite the cost pressures, the refinery said it had absorbed nearly 20 per cent of the increase to cushion the impact on the Nigerian market.
Meanwhile, figures released by the Major Energies Marketers Association of Nigeria (MEMAN) suggest that imported petrol remains slightly cheaper than locally refined fuel.
MEMAN data showed that while Dangote’s petrol gantry price stood at N874 per litre earlier this week, the landing cost of imported petrol was estimated at N809.37 per litre, creating a difference of roughly N64 per litre.
The association also reported that diesel produced by the refinery was priced at N1,169.42 per litre, compared with N1,125.70 per litre for imported diesel.
The latest development has renewed debate within the energy sector about pricing dynamics in Nigeria’s deregulated petroleum market and the implications for consumers already grappling with rising living costs.
Leave a Reply