Petrol Prices Surge as Dangote Refinery Implements New Price Hike, Retail Costs Hit N1,150 per Litre

Petrol Prices Surge as Dangote Refinery Implements New Price Hike, Retail Costs Hit N1,150 per Litre

The retail price of Premium Motor Spirit (PMS), or petrol, has surged to between N1,030 and N1,150 per litre following an increase in ex-depot prices by Dangote Refinery.

On Friday, PulseNets learned that Dangote Refinery, valued at $20 billion, announced a fresh hike in its ex-depot price, raising it from N899 per litre to N955 per litre.

According to an email sent to its clients, Dangote Refinery confirmed the new price structure, specifying that marketers purchasing between two million and 4.99 million litres would now buy at N955 per litre, while those buying five million litres and above would pay N950 per litre.

This price hike marks a N55 or 6.17 percent increase from the previous price of N899.50 per litre, which had been set as a holiday discount for Nigerians last December.

The price adjustment by Dangote Refinery has triggered varying increases in retail prices across different filling stations.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, spoke to PulseNets, confirming that petrol could sell for over N1,100 per litre at member stations across the country.

“Commuters will likely pay over N1,150 per litre in distant locations, while stations closer to the depot may charge N1,100. This is because we will have to factor in approximately N50 for logistics costs. Currently, ex-depot prices have risen to N980,” Ukadike stated.

He further explained that the change in prices is immediate, driven by the rise in crude oil prices.

Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association of Nigeria, also spoke to PulseNets, noting that while it is too early to predict the exact retail price following Dangote Refinery’s increase, it is clear that prices will rise.

“At this moment, we still have an obligation with MRS to sell at N935, and some of us bought products there. So, if they adjust their prices based on Dangote’s hike, the conversation will change,” Gillis-Harry explained.

He added, “After factoring in the cost of procurement, there will be additional logistics costs. Once that is all calculated, we can then determine the most reasonable profit margin.”

In the federal capital territory (FCT), PulseNets gathered that several filling stations had already implemented a price hike of at least N50. For instance, stations that were selling petrol at N980 per litre on Friday morning have raised prices to between N1,040 and N1,155 per litre.

Also Read: Dangote Refinery fuel production impacting European markets — OPEC

Meanwhile, the Nigerian National Petroleum Company Limited’s retail outlets were still selling petrol at N965 per litre as of Friday evening.

It is also worth noting that depot owners had raised their petrol prices earlier in the week.

PulseNets had reported five days ago that a petrol price hike was imminent, as the price of crude oil reached $81 per barrel.

In December last year, petrol prices had been reduced to around N935 to N1,100 per litre across the country.


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