morganable industry Watch
In addition to the gantry price hike, the refinery also reviewed its coastal price upward, increasing it from N1,582,380 to N1,669,545 per metric tonne.
KaNo—
The Dangote Petroleum Refinery has increased its gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by N65 per litre, marking its third upward review in just over a week and intensifying concerns over rising fuel costs across Nigeria.
The latest adjustment, which takes effect from Saturday, raises the gantry price from N1,200 to N1,265 per litre.
This represents a cumulative increase of N100 per litre within eight days,an 8.6 per cent surge that is expected to reverberate across the downstream petroleum sector.
Details of the new pricing structure were contained in a communication issued by Dangote Petroleum Refinery and Petrochemicals FZE and obtained by the Punch Newspaper.
Dangote Refinery Review Coastal Price
In addition to the gantry price hike, the refinery also reviewed its coastal price upward, increasing it from N1,582,380 to N1,669,545 per metric tonne.
Customers were directed to return all existing Authorisations to Collect (ATCs) for repricing, with the refinery stating that new volume contracts would be issued to enable immediate resumption of product loading.
“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption,” the notice read.
The most recent increase represents a 5.4 per cent rise compared to the previous rate.
Earlier in the month, the refinery had raised its petrol price from N1,165 to N1,185 per litre on August 21, before implementing another N15 increase to N1,200 per litre on August 26.
Industry analysts say the rapid succession of price adjustments underscores the volatility currently characterising Nigeria’s fuel market, driven largely by fluctuations in global crude oil prices, foreign exchange instability, and rising logistics costs.
Price Adjusted At Retail, Depot Level
The development is expected to trigger a fresh wave of price adjustments at both depot and retail levels, as petroleum marketers recalibrate their pricing to reflect the higher cost of supply.
Already, petrol is selling between N1,250 and N1,300 per litre in several parts of the country, according to industry sources.
Market watchers warn that the latest increase pushes the refinery’s gantry price N265 above the N1,000 per litre benchmark, raising the likelihood of further increases in pump prices and transportation costs,factors that could deepen inflationary pressures on households and businesses.
The price hike comes amid continued volatility in the international oil market, exacerbated by geopolitical tensions, including concerns over the impact of the Iran-United States standoff on global crude supply.
Industry pricing platform Petroleumprice.ng has linked the latest adjustment partly to rising freight rates, which have increased the cost of importing crude and distributing refined products.
Despite being located in Nigeria, the Dangote refinery relies significantly on imported crude oil to sustain operations.
With a nameplate capacity of 700,000 barrels per day, the Dangote refinery is the largest in Africa and has rapidly become a dominant supplier of refined petroleum products in Nigeria.
Stakeholders in the downstream sector say the interplay of international crude prices, exchange rate fluctuations, and logistics challenges continues to complicate business planning for marketers.
IPMAN Commends Dangote’s Free Delivery Policy
The National Publicity Secr etary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, had earlier warned that persistent fluctuations in market variables were making it increasingly difficult for operators to maintain stable pricing.
Amid the price hikes, however, the association has commended Dangote refinery for introducing a free petrol distribution initiative aimed at easing operational constraints for independent marketers.
According to Ukadike, the scheme recently extended to states such as Imo and Anambra has helped reduce the financial strain associated with product procurement and distribution.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” he said, noting that delays in product loading after payment had previously tied down capital and created significant hardship for operators.
He explained that the new arrangement allows marketers to receive products more quickly, improving cash flow and enabling them to operate more efficiently.
“There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks. This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” Ukadike added.
According to him, these savings could ultimately translate into more moderate pump prices for consumers.
“You also have less risk, and you have petroleum products at your doorstep.
Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.
Ukadike called on the refinery’s management to extend the initiative to more states, particularly in northern Nigeria, to ensure more uniform pricing nationwide and reduce regional disparities in fuel costs.
“We want to commend the management of Dangote Refinery for making this possible, and we are also appealing to them to extend it further to other states, especially those in the northern areas, so that petroleum products will be bought uniformly. This will reduce the hardship Nigeria is facing,” he said.
As the market adjusts to the latest price increase, analysts say the coming days will be critical in determining its full impact on retail fuel prices and broader economic conditions.
For many Nigerians already contending with high living costs, the trajectory of petrol prices remains a key concern, with implications for transportation, food prices, and overall inflation.
