See what Petrol Prices Increases to, Following Dangote Refinery Price Hike
The cost of Premium Motor Spirit (PMS), commonly known as petrol, has surged to between ₦1,050 and ₦1,150 per litre, depending on the location, following a price adjustment by the Dangote Petroleum Refinery and other depot owners.
Fuel dealers have indicated that this price increase is likely to continue, as the cost of crude oil, a key component in fuel production, has been rising steadily.
Festus Osifo, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, had previously warned that petrol prices could climb if crude oil prices continued to rise. He noted that the price of crude oil had reached $80 per barrel and emphasized that without improvements in the exchange rate, further increases in PMS prices were expected.
On Friday, Dangote Petrochemical Refinery raised its petrol price from ₦899 per litre to ₦955 per litre at its loading gantry. In an official communication sent to customers, the refinery announced that new prices would apply for all purchases, with quantities of 2 million to 4.99 million litres priced at ₦955 per litre, and purchases of 5 million litres or more priced at ₦950 per litre. This price hike represents a 6.17% increase, or ₦55.50, from the previously discounted price of ₦899.50 per litre.
The revised pricing took effect at 5:30 pm on Friday, impacting both existing stock and new deliveries. Private depots, even those with older stock, have adjusted their prices, with loading costs in Lagos rising to ₦970 per litre, while prices in Calabar reached ₦1,000 per litre.
A breakdown of depot price changes revealed several increases, including at Sahara Depot, which raised its price from ₦950 to ₦970 per litre; Pinnacle Depot, which increased from ₦921 to ₦970; and NIPCO, which raised its price by ₦30 to ₦980 per litre.
Independent marketers, under the Independent Petroleum Marketers Association of Nigeria (IPMAN), forecasted that the retail price of petrol could reach ₦1,100 per litre in Lagos and surrounding areas, and possibly ₦1,150 per litre in the Federal Capital Territory.
Industry expert Olatide Jeremiah, CEO of petroleumprice.ng, explained that the Dangote refinery’s influence on fuel prices has grown significantly, with private depots and marketers adjusting to the refinery’s pricing. He further highlighted that the rising price of Brent crude oil, currently at $81.84 per barrel, is a key factor driving the increase in
petrol prices.
