The Dangote Petroleum Refinery has increased its ex-depot price for petrol, raising concerns among industry stakeholders that pump prices in Nigeria could eventually climb toward ₦2,000 per litre if the upward trend continues.
According to industry sources, the refinery has raised the gantry price of Premium Motor Spirit (PMS) to ₦1,175 per litre, marking the fourth price adjustment since March 2.
Under the new pricing structure communicated to fuel marketers, the petrol price increased sharply from ₦995 per litre, signaling growing pressure in the country’s downstream petroleum market.
The refinery also revised the price of Automotive Gas Oil (AGO), commonly known as diesel, raising it from ₦1,430 per litre to ₦1,620 per litre.
Market analysts said the frequent price adjustments reflect the volatility currently affecting global oil markets, which have recently experienced a significant rally.
As of around 1:00 pm WAT, Brent crude was trading at approximately $102.8 per barrel, up about 10.9 percent, while West Texas Intermediate crude stood at roughly $101.0 per barrel, representing an 11.1 percent increase.
Industry participants noted that pricing decisions by the Dangote refinery often set the benchmark for depot prices across major fuel distribution hubs in the country. As a result, marketers are expected to adjust their pricing strategies in response to the revised gantry rates.
The development follows a recent decision by the refinery to temporarily suspend petrol loading operations and restrict truck-out activities, a move that had already fuelled speculation about a possible price adjustment.
BUSINESSDAY