The Dangote Petroleum Refinery has increased its Premium Motor Spirit gantry price to N995 per litre, marking a sharp N221 rise within four days, amid volatility in global crude oil prices and shipping costs.
Some fuel stations have followed suit, adjusting to between N1190 and N12000, a development that continues to impoverish Nigerians
For instance, NIPCO fuel station at Arepp, Ogun State as at 5pm on Friday was dispensing to customers at N1190 per litre.
Metrobusinessnews.com (MBN) gathered that some other filling stations in Lagos and along Lagos/Ibadan Expressway sell at N1200 per litre.
However, according to an interview with PUNCH on Friday, a senior official of Dangote refinery confirmed the news, saying the latest price adjustment followed recent shifts in global oil market fundamentals.
“Yes, the price has been reviewed. The new gantry price is now N995 per litre,” the official said.
The new price represents an increase from N874 per litre, which itself was introduced earlier this week after the refinery raised its ex-depot price from N774 to N874 per litre.
With the latest revision, the refinery’s petrol price has climbed from N774 to N995 per litre within four days, representing about a N221 or 29 per cent increase over the period.
Checks on petroleumprice.ng, also confirmed that the new gantry price had already been updated on the portal, signalling a shift in domestic downstream pricing benchmarks.
The latest price adjustment has triggered fresh increases in retail pump prices across the country in several locations depending on transportation costs and marketers’ margins.
It also followed a brief halt in petrol loading operations at the refinery, a development that had earlier sparked speculation among marketers that another price increase might be imminent.
Sources confirmed that truck-out operations for petrol were suspended at about 2:00 a.m. on Friday, leaving depot owners and bulk marketers uncertain about the refinery’s next pricing direction.
READ ALSO:Tinubu Moves to Tackle Power, Grid, Transmission Challenges, Inaugurates Committee On GAMCO
Market participants noted that similar pauses in petrol loading at the facility have historically preceded price adjustments.
The Dangote refinery management have repeatedly maintained that its pricing decisions, insisting that petrol prices must reflect prevailing global crude oil prices, logistics costs and operational realities.
According to a statement released on Thursday, the company noted that it does not arbitrarily determine prices but adjusts them based on international market movements and the cost of crude oil used for refining.
The refinery said its pricing strategy reflects Nigeria’s transition to a fully deregulated downstream petroleum market, where petrol prices are now largely influenced by global crude oil prices, foreign exchange rates and supply dynamics.
It also promised to ensure that Nigeria is insulated from global supply shocks by prioritising supply to the domestic market amid the ongoing US-Iran war.
“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 many benefits of domestic refining.
“The conflict has driven global crude and freight prices sharply higher, with benchmark Brent prices rising by about 26 per cent within a short period to above $84.0 per barrel,” the statement read.
The company further revealed that it takes in about 20 percent of the rising costs in order to help ease pressure on the domestic market.
Following the eruption of war in the Middle East, data from the Major Energies Marketers Association of Nigeria showed that a litre of imported petrol is about N64 cheaper than the one produced by the Dangote Petroleum Refinery.
Data by MEMAN also revealed that Dangote’s petrol gantry price was N874 per litre as of Monday, while the landing cost of imported petrol was N809.37 per litre, showing a difference of about N64 between the two sources.
MEMAN also reported that Dangote’s diesel price was N1,169.42, while imported diesel was N1,125.70 per litre.
