- The Dangote Petroleum Refinery has raised its Premium Motor Spirit (petrol) gantry price to N995 per litre, reflecting a N221 increase within four days
- The price hike follows a temporary suspension of petrol truck-out operations at the refinery, sparking speculation among marketers about an impending adjustment
- The refinery also reported absorbing about 20% of rising costs to moderate the impact on domestic prices amid global energy market volatility
The gantry price of Premium Motor Spirit (petrol) at the Dangote Petroleum Refinery has been increased to N995 per litre, reflecting a sharp N221 rise within four days amid fluctuations in global crude oil prices and shipping costs.
A senior official of the refinery confirmed the development to PUNCH on Friday, March 6, explaining that the latest adjustment followed recent shifts in international oil market dynamics.
“Yes, the price has been reviewed. The new gantry price is now N995 per litre,” the official stated.
The revised price marks an increase from N874 per litre, which was introduced earlier in the week after the refinery first raised its ex-depot price from N774 to N874 per litre.
With the latest adjustment, the price of petrol from the refinery has climbed from N774 to N995 within four days, a jump of about N221, or 29 per cent.
Information on petroleumprice.ng also confirmed the update of the new gantry price, indicating a shift in domestic downstream pricing benchmarks.
The price revision is likely to trigger another increase in retail pump prices across the country, with petrol potentially selling above N1,050 per litre in several locations depending on transportation expenses and marketers’ profit margins.
The change follows a temporary suspension of petrol loading operations at the refinery, a move that had earlier raised speculation among marketers about an impending price adjustment.
Reports indicated that truck-out operations for petrol were halted at about 2:00 a.m. on Friday, March 6, leaving depot owners and bulk marketers uncertain about the refinery’s next pricing direction.
Industry observers noted that similar pauses in loading activities at the facility have historically preceded price revisions.
Officials at the refinery reiterated that pricing decisions are tied to global market forces, logistics costs and operational realities, rather than arbitrary adjustments.
In a statement released on Thursday, March 5, the refinery explained that its pricing strategy aligns with international crude oil movements and operational costs.
The company stressed that Nigeria’s downstream petroleum market is fully deregulated, meaning petrol prices are influenced by global crude oil prices, foreign exchange rates and supply conditions.
It further assured that the country would be shielded from global supply disruptions by prioritising domestic supply.
“The Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the many benefits of domestic refining,” the statement read.
“The conflict has driven global crude and freight prices sharply higher, with benchmark Brent prices rising by about 26 per cent within a short period to above $84.0 per barrel.”
The refinery also stated that it absorbed about 20 per cent of the rising costs in an effort to ease pressure on domestic prices.
Meanwhile, data from the Major Energies Marketers Association of Nigeria revealed that imported petrol remains about N64 cheaper than petrol produced by the refinery.
According to the association, the refinery’s petrol price was N874 per litre earlier in the week, while the landing cost of imported petrol stood at N809.37 per litre, a difference of roughly N64.
The data further showed that the refinery’s diesel price was N1,169.42 per litre, compared to N1,125.70 for imported diesel.