The price of Premium Motor Spirit (PMS), commonly known as petrol, has risen to between N1,030 and N1,150 per litre following a price increase by Dangote Refinery and adjustments in ex-depot prices.
On Friday, Dangote Refinery, which operates the $20 billion facility, announced a hike in its ex-depot price from N899 per litre to N955 per litre. According to an email sent to its customers, the new pricing structure now applies to marketers purchasing between 2 million and 4.99 million litres at N955 per litre, while purchases above 5 million litres will be priced at N950 per litre.
This price hike represents a N55 or 6.17 percent increase from the previous price of N899.50 per litre, which had been introduced as a holiday discount for Nigerians last December.
The refinery’s adjustment has led to varying retail price changes across filling stations nationwide. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, confirmed that the retail price of petrol could exceed N1,100 per litre at many stations.
“Commuters may pay over N1,150 per litre in distant locations, while stations closer to depots will charge around N1,100 due to an additional N50 in logistics costs. Ex-depot prices have already risen to N980,” he explained, adding that the increase is immediate due to the recent rise in crude oil prices.
Billy Gillis-Harry, president of the Petroleum Products Retail Outlet Owners Association of Nigeria, noted that while it’s too early to predict the exact retail price, an increase is certain. “We still have an agreement with MRS to sell at N935, and some of us bought products at that price. If their prices change due to Dangote's price hike, we’ll need to reassess,” he said.
Filling stations in the Federal Capital Territory (FCT), Abuja, have already started adjusting prices, with some raising their rates by at least N50. For example, stations that previously sold petrol for N980 per litre have increased prices to between N1,040 and N1,155 per litre.
As of Friday evening, Nigerian National Petroleum Company Limited (NNPC) retail outlets were still selling petrol at N965 per litre.
It’s worth noting that depot owners had also increased petrol prices earlier in the week, aligning with the recent rise in crude oil prices, which recently surged to $81 per barrel. Petrol prices had fallen to around N935 to N1,100 per litre last December, but with this latest price hike, higher costs are expected nationwide.
