The price of Premium Motor Spirit (PMS), commonly known as petrol, has surged to between N1,050 and N1,150 per litre across various regions, following an increase in rates by the Dangote Petroleum Refinery and private depot operators.
Industry experts have attributed the rising costs to the consistent increase in crude oil prices, a key factor in fuel production.
Festus Osifo, National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, recently highlighted this trend. “The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” he said in Lagos.
On Friday, the Dangote Petrochemical Refinery announced a new price structure for its petrol products, raising the cost at its loading gantry from N899 to N955 per litre. The adjustment was communicated to customers via email and took effect at 5:30 pm the same day.
The email, titled Communication on PMS Price Review, stated: “Kindly be advised that effective from 5:30 pm today (Friday), an upward adjustment has been implemented on the gantry price of Premium Motor Spirit. Quantity Previous Price (NGN/Litre): 2 million-9.99 million – N899.50; 10 million litres & above – N895. Quantity New Price (NGN/Litre): 2 million – 4.99 million – N955; 5 million litres & above – N950.”
The ripple effect was felt across the downstream petroleum sector as private depots adjusted their rates. Depots in Lagos increased loading prices to N970 per litre, while Calabar depots set prices as high as N1,000 per litre.
A detailed review of depot price changes revealed increments across the board:
Sahara Depot raised its price to N970 from N950.
Pinnacle Depot increased to N970 from N921.
Wosbab Depot moved to N965 from N940.
Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson Chinedu Ukadike warned that consumers in Lagos could pay N1,100 per litre, while those in the Federal Capital Territory might face prices up to N1,150.
“Nigerians will likely pay over N1,150 at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980,” Ukadike explained.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), noted that retailers would struggle to sell below N1,000 per litre. “The Dangote PMS price excludes regulatory charges, which will affect final pump prices,” he said.
Olatide Jeremiah, CEO of petroleumprice.ng, emphasized that the refinery’s pricing significantly impacts the market. “Dangote refinery’s influence on fuel price has become unmatched; private depots, major marketers, and independent marketers will compete with this new price. Therefore, Nigerians should expect an increase in pump prices,” he said.
With Brent crude oil currently at $81.84 per barrel, the highest in 2025, market forces and global oil prices are expected to continue driving up fuel costs in Nigeria.
(PUNCH)
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