- Dangote Refinery increased its ex-depot petrol price to N995 per litre, marking a N121 rise
- The adjustment comes days after the refinery earlier raised the price from N774 to N874 per litre
- The price pressure is linked to rising global crude oil prices, with Brent crude reaching $93.26 per barrel
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s petrol market recorded fresh price pressure on Friday after Dangote Refinery increased its ex-depot price of Premium Motor Spirit (PMS) to N995 per litre.
Source: Getty Images
According to data obtained from Petroleumprice.ng, the new rate reflects an increase of N121 per litre compared with the refinery’s previous price, further tightening conditions in the country’s downstream petroleum sector.
Second increase in days
The adjustment comes only days after the refinery reviewed its price upward on March 2, when the ex-depot rate was raised from N774 to N874 per litre.
Read also
N1,295 per litre: NNPC, others hike petrol prices, regions with highest rates emerge
The earlier increase had already triggered changes across the fuel supply chain, as depot owners quickly increased prices.
Surge in global oil prices responsible
Industry sources say the latest review is linked to the continued surge in global crude oil prices, which has significantly raised the cost of sourcing and replacing refined products.
Checks within the industry also showed that product loading at the refinery was briefly suspended around 2:00 a.m. on Friday before the new price was announced. The temporary pause reportedly created uncertainty among fuel marketers, many of whom had earlier moved to secure supplies in anticipation of another adjustment.
New prices from depots
Following the increase, the impact is already visible in the wholesale fuel market. Several depots are now quoting prices close to N1,000 per litre for PMS as marketers adjust to higher replacement costs.
Prices appear even higher in some locations. Market observations in Calabar showed that a depot operated by Fynfield Oil & Gas had earlier sold petrol at around N1,050 per litre, one of the highest depot prices currently recorded in the country.
Read also
Dangote refinery explains N100 rise in petrol price
At the retail level, filling stations in Nigeria’s North-West region were observed selling petrol at about N1,013 per litre, highlighting growing regional price differences driven by supply routes and logistics costs.
Source: Getty Images
Crude oil rises above N90
The current pressure in the fuel market is largely attributed to the rally in global oil prices. Brent crude, the international benchmark for crude oil, recently climbed to $93.26 per barrel, representing a rise of about 9.19%.
Energy analysts note that higher crude prices increase refinery feedstock costs, shipping expenses and overall replacement values for petroleum products.
With Nigeria’s downstream petroleum sector operating under a deregulated framework, such global price movements are increasingly reflected in local depot and pump prices.
Dangote Refinery suspends loading
Legit.ng earlier reported that the Dangote Petroleum Refinery recently suspended the loading of petrol at its facility, making marketers anticipate a price increase.
Previous pauses in petrol loading at the refinery have sometimes preceded price adjustments.
Marketers and depot operators said they were monitoring the situation for possible changes to petrol pricing.
Source: Legit.ng