The retail price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to between ₦1,030 and ₦1,150 per litre following a fresh petrol; price hike by Dangote Refinery. The refinery, which recently adjusted its ex-depot price, has triggered a ripple effect across Nigeria’s fuel retail market.
Dangote Refinery’s Price Adjustment Sparks Nationwide Increase
On Friday, Opitangloba Media reported that the $20 billion Dangote Refinery raised its ex-depot price from ₦899 per litre to ₦955 per litre. According to an official email sent to its customers, marketers purchasing between two million and 4.99 million petrol; litres would now buy petrol at ₦955 per litre, while those buying five million litres or more would get it at ₦950 per litre.
This latest adjustment represents a ₦55 or 6.17% increase from the refinery’s previous holiday discount of ₦899.50 per litre, announced last December. The new petrol pricing has already led to various retail price increases at filling stations across the country. Reports from Abuja indicate that filling stations that sold petrol for ₦980 per litre on Friday morning have raised prices to between ₦1,040 and ₦1,155 per litre by evening.
Marketers Warn of Further Petrol Price Hikes Due to Logistics and Depot Costs
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed that the petrol price could rise above ₦1,100 per litre across its members’ stations. According to IPMAN spokesperson Chinedu Ukadike, commuters in distant locations may end up paying as high as ₦1,150 per litre due to additional logistics costs. He explained that ex-depot prices have now increased to ₦980 per litre, making it inevitable for retail stations to adjust their pump prices accordingly.
Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), stated that it was too early to predict the exact retail price after the Dangote Refinery hike. However, he acknowledged that the cost of petrol was bound to rise. He further mentioned that some retailers still had stock acquired at previous rates, but once they restock at the new prices, adjustments will follow.
Retailers and Regulatory Charges Push Prices Higher
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has warned that petrol retailers will be forced to sell at higher prices due to additional regulatory charges from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The PETROAN National President, Billy Gillis-Harry, stated that while some members were still selling at N935 per litre under agreements with MRS Oil, they would eventually adjust their prices based on market realities.
Gillis-Harry stressed that pricing decisions must align with the Petroleum Industry Act (PIA), which prescribes guidelines for fuel price computation. He criticized previous predictions that suggested petrol prices could drop to N500 per litre, calling them “false projections not based on empirical data.” He added that PETROAN was conducting a nationwide market assessment before announcing official Petrol Price adjustments. NNPC Retail Stations Remain Below Market Rate—For Now
While most private filling stations have adjusted their prices upwards, the Nigerian National Petroleum Company Limited (NNPC) retail outlets have maintained a relatively lower rate of ₦965 per litre as of Friday evening. This has provided temporary relief to some consumers, but industry analysts warn that NNPC’s price stability may not last long.
Meanwhile, depot owners had also raised their petrol prices earlier in the week, signaling a possible trend of continuous increases. The recent crude oil price surge to $81 per barrel has further fueled speculations of additional hikes in the coming weeks.
Consumers Face Higher Transportation and Living Costs
With petrol prices surpassing the ₦1,000 mark nationwide, Nigerians are bracing for the economic impact. Higher fuel prices translate to increased transportation costs, which will inevitably affect the prices of goods and services. Businesses that rely heavily on petrol-powered generators due to Nigeria’s unreliable electricity supply will also face rising operational expenses.
This latest increase follows a brief period of price relief in December 2023, when petrol prices dropped to between ₦935 and ₦1,100 per litre. However, with the ongoing global crude oil market fluctuations and Dangote Refinery’s revised pricing, consumers may continue to see rising fuel costs in the foreseeable future.
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