Reported by: Ijeoma G | Edited by: Gabriel Osa
The Dangote Petroleum Refinery has raised its Premium Motor Spirit (PMS), commonly known as petrol, gantry price to ₦995 per litre, a significant uptick that signals further upward pressure on fuel costs across Nigeria’s downstream sector. This adjustment marks a cumulative rise of ₦221 per litre within just four days, reflecting escalating costs in the global oil market and related supply chain pressures.
A senior official at the refinery confirmed the revision late Friday, explaining that the new ex-depot price of ₦995 per litre replaces the earlier rate of ₦874 per litre, which itself was adopted earlier in the week following an initial increase from ₦774 per litre. The cumulative rise from ₦774 to ₦995 represents an almost 29 per cent increase over a short span.
Industry analysts and market insiders say the move is being driven primarily by heightened volatility in global crude oil markets and rising operational costs, including freight and shipping expenses. Recent geopolitical tensions, particularly disruptions linked to the conflict involving the United States and Iran, have contributed to turbulence in crude prices, pushing benchmark Brent crude prices higher and increasing the cost of sourcing feedstock and logistics for refining operations.
The refinery has sought to frame the price adjustment as a response to these external market conditions and not an arbitrary change. In official communications, refinery management has stressed that fuel pricing must reflect global market fundamentals, adhering to the realities of a deregulated downstream sector in Nigeria where ex-depot and gantry prices are influenced by international crude prices, foreign exchange rates and supply dynamics rather than state-mandated controls.
Checks by industry data platforms, including petroleumprice.ng, indicate that the updated gantry price is already being reflected in national pricing benchmarks, underscoring the broad impact of the refinery’s revision on the domestic petroleum market.
The direct implication of the gantry price increase is an anticipated rise in retail pump prices at filling stations across the country. With transport and distribution costs factored in, market estimates suggest that pump prices could exceed ₦1,050 per litre in some locations, depending on logistics costs and marketers’ margins.
The adjustment followed a brief halt in petrol loading operations at the refinery earlier in the week — a development that had fueled speculation among marketers about potential price revisions. Such pauses in product loading have in the past preceded price adjustments, according to industry sources.
Despite the rising ex-depot price at the Dangote facility, data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that imported petrol remains comparatively cheaper at the moment, with landing costs below the refinery’s gantry rate. This dynamic highlights ongoing cost pressures in local refining versus import alternatives, even as Dangote’s output continues to shape the national fuel supply landscape.
The Dangote Petroleum Refinery, located in the Lekki Free Trade Zone, Lagos State, is one of the largest single-train refineries in the world and a key component of Nigeria’s domestic fuel production infrastructure, with a design capacity of around 650,000 barrels per day. Its operations have been central to efforts to reduce Nigeria’s dependence on imported refined petroleum products.
Refinery officials have maintained that, even as prices adjust to market conditions, the facility remains committed to prioritising supply to the Nigerian market amid global supply shocks. They argue that absorbing a portion of rising costs is necessary to sustain production and guarantee continuous supply to meet domestic demand.
As the new gantry price takes effect, consumers and transport operators nationwide are expected to experience immediate impacts at the pumps, with further price volatility possible depending on how global oil market conditions evolve in the coming weeks.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments