Dangote Refinery Raises Petrol Price to N995 per Litre

Dangote Refinery Raises Petrol Price to N995 per Litre

The Dangote Petroleum Refinery has increased the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, to N995 per litre, marking a steep rise within a few days as global crude oil prices and shipping costs continue to fluctuate.

A senior official of the refinery confirmed the development on Friday, noting that the latest adjustment followed shifts in international oil market conditions.

“Yes, the price has been reviewed. The new gantry price is now N995 per litre,” the official said.

The revised price represents a significant jump from N874 per litre, which had only recently replaced the earlier N774 per litre ex-depot price.

With the new adjustment, the refinery’s petrol price has climbed by N221 within four days, representing an increase of roughly 29 per cent over the period.

Industry checks on petroleumprice.ng also indicated that the new gantry price has already been updated on the platform, suggesting a fresh benchmark in domestic downstream pricing.

The latest development is expected to ripple through the retail market, with analysts projecting that pump prices in many parts of the country could rise above N1,050 per litre, depending on transportation costs and marketers’ margins.

The increase comes shortly after petrol loading operations at the refinery were briefly halted, a move that had triggered speculation among depot owners and marketers that another price adjustment might be imminent.

Sources in the downstream sector said truck-out activities for petrol were suspended around 2:00 a.m. on Friday, leaving bulk distributors uncertain about the refinery’s next pricing direction.

Market operators noted that similar pauses in loading operations at the facility have previously preceded price reviews.

Officials of the refinery have consistently defended the pricing structure, maintaining that petrol prices are determined by prevailing global crude oil costs, logistics expenses and other operational realities.

In an earlier statement, the company said its pricing framework aligns with Nigeria’s shift to a deregulated downstream petroleum market, where fuel prices are influenced largely by international crude oil prices, foreign exchange movements and supply dynamics.

The refinery also assured that it would prioritise supply to the domestic market in order to shield Nigeria from potential global supply disruptions.

According to the company, escalating tensions in the Middle East; particularly the conflict involving the United States and Iran have pushed global crude oil and freight prices higher.

“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 per barrel,” the refinery said.

It added that despite rising operational costs, the company has absorbed roughly 20 per cent of the increase in order to reduce pressure on the domestic market.

Meanwhile, data from the Major Energies Marketers Association of Nigeria indicates that imported petrol currently has a lower landing cost than locally refined fuel.

According to the association’s data, the landing cost of imported petrol stood at N809.37 per litre, while Dangote Refinery’s gantry price was N874 per litre earlier in the week, representing a difference of about N64 between the two supply sources.

The development reflects the continuing volatility in Nigeria’s fuel market as the country adjusts to a fully deregulated petroleum sector.