The recent increase in petrol prices by the Dangote Petrochemical Refinery has pushed pump prices to between ₦1,050 and ₦1,150 per litre, depending on the location of purchase.
According to Plateau News, the Dangote Refinery raised its Premium Motor Spirit (PMS) price from ₦899 to ₦955 per litre at its loading gantry. In an official email to customers, the refinery announced the revised pricing structure: marketers purchasing between two and 4.99 million litres will now pay ₦955 per litre, while those buying five million litres or more will pay ₦950 per litre.
This marks a 6.17% increase from the ₦899.50 per litre price offered as a holiday discount last December.
Industry dealers have confirmed that petrol prices are set to rise further due to the continued increase in crude oil prices, a key factor in fuel production.
A report by The Punch revealed that private depots, even with old stocks, have adjusted their prices, raising the loading costs to ₦970 per litre in Lagos and ₦1,000 per litre in Calabar.
Depot Price Adjustments
- Sahara Depot raised its price from ₦950 to ₦970 per litre.
- Pinnacle Depot increased its rate from ₦921 to ₦970 per litre.
- Wosbab Depot adjusted its price from ₦940 to ₦965 per litre.
- NIPCO increased its loading price from ₦950 to ₦980 per litre.
- Rainoil raised its rate from ₦950 to ₦970 per litre.
- In Calabar, Alkanes Depot now charges retailers ₦1,000 per litre for supplies.
- Zone 4 and Mainland Depots increased their prices from ₦985 to ₦1,005 per litre.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has forecasted significant increases in retail petrol prices, with costs potentially reaching ₦1,100 per litre in Lagos and surrounding areas.
For locations further away, such as the Federal Capital Territory and other hinterlands, prices could soar to ₦1,150 per litre.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, attributed the rising costs to global crude oil price hikes, which directly impact domestic production and distribution.
Ukadike explained, “The Dangote Refinery has adjusted its price to ₦955 per litre due to the rise in Brent crude prices. This means production costs domestically have also gone up.
“For locations far from the depots, like the hinterlands, prices will surpass ₦1,150 per litre, as we need to factor in about ₦50 in logistics costs. Areas closer to depots will likely see prices around ₦1,100 per litre.”
He further emphasized the immediate nature of these changes, stating that deregulation has tied local petrol prices to global market dynamics. “Deregulation means the forces of demand and supply dictate the price.
With Brent crude prices rising, domestic costs also follow suit. Unfortunately, this fluctuation impacts both marketers and consumers,” he noted.
Marketers are already feeling the strain of these fluctuating costs, which continue to challenge their business operations.