Petrol prices across Nigeria could soon approach ₦1,050 per litre following a fresh increase in the ex-depot price of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery.
The refinery has raised its gantry price to ₦995 per litre, a significant jump from the ₦874 per litre it charged only days earlier. The previous adjustment had already moved the price up from ₦774 per litre, indicating a rapid series of increases within a short period.
An official of the refinery confirmed the new pricing on Friday, explaining that the adjustment reflects current conditions in the global oil market and the increasing cost of crude oil used in refining.
According to the official, the refinery periodically reviews its prices to align with prevailing international market trends.
Industry analysts say the latest increase could push the pump price of petrol to around ₦1,050 per litre in several parts of the country once transportation costs, distribution expenses and marketers’ margins are added.
The development followed a brief suspension of petrol loading activities at the refinery earlier on Friday, a move that created uncertainty among fuel marketers who suspected a possible price review.
Operators in the downstream petroleum sector noted that temporary pauses in product loading have in the past preceded adjustments in prices from the facility.
The Major Energies Marketers Association of Nigeria (MEMAN) recently released data indicating that the landing cost of imported petrol currently stands at about ₦809.37 per litre.
This means imported petrol remains roughly ₦64 cheaper than the refinery’s earlier ex-depot price benchmark, raising fresh questions about pricing competitiveness within the deregulated market.
Industry observers warn that if marketers transfer the higher supply costs to consumers, another nationwide increase in petrol pump prices may be unavoidable.
Nigeria’s fuel market has remained volatile since the removal of petrol subsidy by President Bola Ahmed Tinubu in May 2023.
The policy ended decades of government-controlled fuel pricing and introduced a fully deregulated downstream petroleum sector where prices are largely determined by market forces such as global crude oil prices, exchange rate fluctuations and supply logistics.
Although the start of operations at the Dangote Petroleum Refinery was expected to stabilise fuel supply and reduce reliance on imports, analysts say pricing pressures in the international oil market continue to influence petrol costs within Nigeria.