NEWS
Dangote Refinery Raises Petrol Price Again, Pushes Gantry Cost to ₦1,265 Per Litre
Dangote Refinery Raises Petrol Price Again, Pushes Gantry Cost to ₦1,265 Per Litre
The Dangote Petroleum Refinery has announced another increase in the price of Premium Motor Spirit (PMS), popularly known as petrol, raising its gantry price by N65 per litre just three days after its previous adjustment.
The latest increase takes the refinery’s gantry price from ₦1,200 to ₦1,265 per litre and becomes effective from Saturday, adding fresh pressure to an already volatile downstream petroleum market.
The development marks the third petrol price increase by the Dangote refinery in just eight days, taking the cumulative increase within the period to ₦100 per litre, representing an overall rise of about 8.6 per cent.
The latest adjustment was communicated in a price change notice issued by Dangote Petroleum Refinery and Petrochemicals FZE and sighted by Sunday PUNCH.
Beyond the gantry price, the refinery also reviewed its coastal price upward, increasing it from ₦1,582,380 to ₦1,669,545 per metric tonne.
As part of the new pricing arrangement, customers with existing Authorisations to Collect (ATCs) have been directed to return them for repricing before they can resume loading.
“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption,” the company stated.
The latest adjustment represents a 5.4 per cent increase in the refinery’s gantry price and comes at a time when marketers and consumers are already contending with significant fluctuations in petrol prices across different parts of the country.
Third Increase in Eight Days:-
The latest price movement follows two previous adjustments announced by the refinery within the past week.
On August 21, the Dangote refinery increased the price of petrol from ₦1,165 to ₦1,185 per litre. Five days later, on August 26, it raised the price again, this time from ₦1,185 to ₦1,200 per litre.
With Saturday’s latest increase to ₦1,265, the refinery has now added ₦100 to the price of a litre of petrol in just over one week.
The rapid succession of the price reviews is expected to reverberate across the downstream petroleum market, particularly as depot owners, independent marketers and filling stations adjust their prices to reflect the increased cost of supply.
For motorists and other petrol consumers, the development could translate into higher pump prices in locations where the new cost is passed through the distribution chain.
Pressure on Transport and Household Costs:-
The increase could also have wider implications for transportation and the cost of goods and services, particularly in a country where petrol remains a major component of the logistics chain.
Higher petrol prices typically increase the operating costs of commercial transporters, logistics companies and businesses that rely on petrol-powered generators and vehicles.
The latest development is coming amid continued volatility in the international oil market, with crude prices, freight charges, foreign exchange movements and supply logistics remaining important factors influencing the domestic price of refined petroleum products.
According to industry pricing platform Petroleumprice.ng, the latest adjustment may be linked to a rise in freight rates. The development is also taking place against the backdrop of concerns over the impact of the Iran-US conflict on global crude supply and petroleum product prices.
Marketers Raise Concerns Over Market Volatility:-
Following the refinery’s previous price adjustment on August 26, independent petroleum marketers had expressed concern over the difficulty of planning their businesses amid frequent movements in crude prices, foreign exchange rates and other market variables.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, had disclosed that petrol was already selling for between ₦1,250 and ₦1,300 per litre in some locations. He also warned that additional disruptions in the international oil market could intensify price volatility and place further pressure on consumers.
With the Dangote refinery’s gantry price now standing at ₦1,265 per litre, it is ₦265 above the ₦1,000 per litre threshold, increasing expectations that pump prices could rise further in some parts of the country.
Dangote Refinery’s Growing Role in Nigeria’s Fuel Market:-
The Dangote Petroleum Refinery, located in Lekki, Lagos State, is Africa’s largest oil refinery and has a nameplate capacity of 700,000 barrels per day.
Since commencing operations, the refinery has increasingly become a major supplier of refined petroleum products to the Nigerian market, playing a significant role in the country’s evolving downstream petroleum sector.
Reuters recently reported that the refinery was operating near its 700,000-barrel-per-day capacity, while between 30 and 40 per cent of its crude feedstock was being imported.
The reliance on imported crude means the refinery remains exposed to movements in international crude prices, freight charges, shipping expenses and other logistics-related costs.
As a result, developments in the global oil market can have direct implications for the refinery’s production economics and, ultimately, the prices at which petroleum products are supplied to the domestic market.
Fresh Uncertainty for Consumers:-
The latest price increase is therefore expected to generate fresh adjustments throughout Nigeria’s downstream petroleum sector in the coming days.
While the actual pump price consumers pay will vary depending on transportation, depot charges, location, operating costs and individual marketers’ pricing decisions, the increase in the refinery’s gantry price provides a new cost pressure for businesses sourcing petrol from the facility.
For millions of Nigerian motorists, transport operators and businesses that depend heavily on petrol, attention will now turn to how quickly the latest adjustment filters through to filling stations and whether it triggers another round of increases in pump prices.
The development further highlights the sensitivity of Nigeria’s petrol market to movements in international crude prices, supply conditions, logistics expenses and other market forces, with consumers once again facing uncertainty over what they will pay for petrol in the days ahead.
DO YOU WANT TO WHISTLEBLOW, REPORT FRAUD, THEFT OR INJUSTICE OR INTIMIDATION? SEND US YOUR STORY/REPORT TO NEWSDESK@MEDIATODAY.NG
