KEY POINTS
- Dangote Refinery increased its petrol ex-gantry price to N995 per litre, the second price hike within a week.
- Rising global crude oil prices and shipping costs were cited as the main reasons for the adjustment.
- Pump prices may exceed N1,050 per litre nationwide as marketers adjust to the new refinery price.
The Dangote Refinery has raised the ex-gantry price of Premium Motor Spirit, petrol, to N995 per litre, marking a N121 increase from its previous rate of N874 per litre.
The adjustment represents the second price hike within the same week, following an earlier increase from N774 to N874 per litre.
Industry observers say the rapid price adjustments reflect the growing pressure on refiners and fuel marketers as international oil prices continue to climb.
The ex-gantry price is the amount marketers pay to lift petrol directly from the refinery, meaning any increase at that level typically translates to higher pump prices nationwide.
Rising Global Oil Prices Driving the Increase
According to the refinery, the latest adjustment was driven by volatility in global crude oil prices and rising shipping costs. These factors have significantly raised the cost of producing and transporting refined petroleum products.
Global oil prices have been climbing in recent weeks, with Brent crude reaching around $91 per barrel amid heightened geopolitical tensions in the Middle East. Market analysts warn that continued disruptions to oil supply routes could further push prices upward, adding pressure to energy markets worldwide.
Pump Prices Expected to Climb Nationwide
The increase in the ex-gantry price is expected to trigger a fresh rise in retail petrol prices across Nigeria. Fuel marketers say that once logistics, transportation, and retail margins are added, petrol could sell for more than N1,050 per litre in several parts of the country.
In some regions, especially locations far from major supply depots, pump prices could climb even higher due to additional distribution costs. Consumers are therefore likely to feel the impact almost immediately at filling stations.
Despite the adjustment, the refinery stated that it had absorbed about 20 percent of the rising costs in an effort to reduce the burden on the domestic market. Industry analysts say this indicates that the actual cost pressures on fuel production may be even higher than reflected in the new price.
The Dangote Refinery, widely regarded as Africa’s largest oil refining facility, has become a key supplier in Nigeria’s petrol market since beginning large-scale operations, making its pricing decisions highly influential for the country’s fuel economy.
