Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
Nigerian consumers are reeling from another wave of petrol price increases, with pump prices surging past N1,300 per litre in Abuja and Lagos following three separate price hikes by Dangote Refinery within a single week. Checks by Sunday Vanguard showed that retail outlets in the Federal Capital Territory had again increased their pump prices by between N60 and N75 per litre, following similar adjustments by Dangote Refinery and other depot owners. In Abuja, MRS, a Dangote Refinery partner station, raised its pump price from N1,250 to N1,310 per litre, while AYM Shafa and AA Rano increased their prices from N1,270 to N1,320 per litre. Adova Plc also raised its price to N1,347 per litre from N1,275. A week ago, the same product sold for between N1,230 and N1,255 per litre. Reports from Lagos also indicated that some MRS and Dangote-backed filling stations had raised their retail price to about N1,310 per litre.
The latest pump price increases came barely 24 hours after Dangote Refinery raised its gantry price from N1,200 to N1,265 per litre. The refinery had sold the product to marketers at N1,185 per litre a week earlier. The development is the third price increase by the refinery in eight days, bringing the total rise within the period to N100 per litre. The refinery had on August 21 increased its petrol price from N1,165 to N1,185 per litre before raising it by another N15 to N1,200 on August 26. The latest adjustment, which took effect on Saturday, August 29, represents a 5.4 per cent rise in the gantry price. Dangote Refinery also increased its coastal PMS price from N1,582,380 to N1,669,545 per metric tonne.
Speaking to Vanguard at the AYM Shafa station in Karu, motorist Joachim Musa expressed frustration over the frequent price adjustments. "I was here yesterday and the price was N1,270 and today it is N1,320 per litre. Last week it was N1,250. It is impossible to know how much petrol costs until you arrive at the station," he said. He added: "At times, the stations change prices twice in one day. The government should intervene and ensure price stability. It is no longer funny at all". Another motorist, Shuaibu Muhammad, blamed the government for the price instability, saying there appeared to be little oversight of the downstream petroleum industry. "Who is checking what the filling stations are doing? We have been left at the mercy of the petrol station owners," he said.
The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chief Chinedu Ukadike, said marketers had contended with frequent gantry price adjustments over the past week. "Every time Dangote increases his price, our price will also rise," he said, adding that independent marketers were being forced to adjust their pump prices because they could not continue selling at a loss. Ukadike said the volatility was making it difficult for marketers and consumers to plan, noting that the cost of replacing products could change significantly within a short period. He attributed fluctuations in petrol prices to several factors, including international crude oil prices, movements in the foreign exchange market, and geopolitical developments affecting global oil supplies.
The price increases have occurred despite a recent decline in international crude prices. Reuters reported that Brent crude fell 0.43 per cent on Friday, August 28, while WTI declined 0.16 per cent. Brent recorded a weekly loss of more than five per cent, while WTI fell by more than four per cent. However, the Nigerian downstream market continues to face other cost pressures, including crude sourcing, freight, logistics and foreign-exchange-related factors. A recent Reuters report noted that the Dangote refinery is operating near its 700,000-barrel-per-day capacity but imports between 30 and 40 per cent of its crude feedstock. The refinery's reliance on imported crude exposes its operations to international crude prices, freight costs and other logistical expenses.
The latest development represents a sharp reversal from earlier this month, when Dangote Refinery reduced its petrol price by N50 per litre, from N1,215 to N1,165, effective August 6. The refinery has since reversed course as market conditions have changed. The rapid increase is expected to put additional pressure on transport operators, businesses and households, particularly if other marketers continue to reprice their products. Ukadike warned that further disruptions in the international oil market could worsen price volatility and increase pressure on consumers.
The Dangote refinery, Africa's largest oil refinery with a nameplate capacity of 700,000 barrels per day, has emerged as a major supplier of refined petroleum products to the Nigerian market. However, the refinery's pricing decisions have become a source of concern for consumers and marketers alike. A recent report by the US Energy Information Administration, cited by Reuters, said Nigeria's seaborne petroleum-product exports have increased sevenfold since 2023, with production from the Dangote refinery playing a major role in the change. As the refinery continues to shape the dynamics of Nigeria's downstream petroleum sector, consumers are left to bear the brunt of its pricing decisions—and the government's apparent inability to provide stability.
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