The gantry price of Premium Motor Spirit (petrol) from the Dangote Petroleum Refinery has increased to N995 per litre, raising concerns that the retail pump price could soon climb to about N1,050 per litre across parts of Nigeria.
The adjustment represents a sharp increase within a few days, as the refinery had earlier raised the ex-depot price from N774 to N874 per litre before the latest jump to N995 per litre.
An official of the refinery confirmed the new price to PUNCH on Friday, explaining that the change was influenced by developments in the international oil market and the rising cost of crude used for refining.
According to the official, the refinery reviewed its pricing to reflect prevailing market realities.
Industry analysts say the new gantry price could push pump prices above N1,050 per litre in several locations once transportation costs and marketers’ margins are added.
The development followed a temporary halt in petrol loading operations at the refinery earlier on Friday, which created uncertainty among marketers about a possible price review.
Operators in the downstream sector noted that such pauses in product loading have previously preceded price changes at the facility.
The refinery has maintained that its pricing decisions are tied to global crude oil prices, foreign exchange rates and logistics costs, stressing that the country now operates a deregulated downstream petroleum market where prices are largely determined by market forces.
Meanwhile, data from the Major Energies Marketers Association of Nigeria indicates that the landing cost of imported petrol is currently lower than the price from the Dangote refinery.
According to the association, imported petrol costs about N809.37 per litre, roughly N64 cheaper than the refinery’s earlier price benchmark.
Industry observers say the latest development could trigger another round of fuel price adjustments nationwide if marketers pass the higher costs on to consumers.
The development comes amid ongoing volatility in Nigeria’s downstream petroleum sector following the removal of fuel subsidy by President Bola Tinubu in May 2023.
The policy ended decades of government price control on petrol and ushered in a fully deregulated market where prices are largely determined by market forces.
Since the subsidy removal, petrol prices have fluctuated repeatedly due to changes in global crude oil prices, exchange rate pressures and supply dynamics.
The commencement of operations at the Dangote Petroleum Refinery was widely expected to help stabilise local fuel supply and reduce dependence on imports.
However, pricing dynamics in the deregulated market have continued to influence pump prices across the country.
Meanwhile, data from the Major Energies Marketers Association of Nigeria shows that the landing cost of imported petrol currently stands at about N809.37 per litre, which is lower than the refinery’s previous ex-depot price.
