By Benson Daniel
Dangote Petroleum Refinery has increased the wholesale price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,350 per litre, putting fresh pressure on pump prices across Nigeria.
The latest adjustment represents an N85 increase from the refinery’s previous gantry price of N1,265 per litre, translating to a rise of about 6.7 per cent. The new rate took effect amid a sharp increase in international crude oil prices and the cost of replacing petroleum products.
The adjustment is expected to influence the prices charged by fuel marketers, particularly those sourcing products directly from the Dangote refinery. Retail prices, however, may vary from one location to another depending on transportation costs, depot charges, margins and other operating expenses.
The latest refinery price is also above the prevailing petrol landing-cost benchmark, which has been put at around N1,311 per litre. This means locally refined petrol from the facility is currently being priced above the estimated cost of importing the same product.
The development comes after a series of changes in the domestic petrol market over the past several weeks. Dangote had earlier raised its gantry price from N1,165 to N1,265 per litre, while some marketers subsequently adjusted their depot and retail prices.
Pump prices have consequently remained volatile across different parts of the country, with motorists in some locations already paying more than N1,300 per litre.
The latest increase is coming at a particularly sensitive time for Nigerian consumers and businesses, as higher fuel costs can quickly translate into increased transportation expenses and higher prices for goods and services.
For households, another rise in petrol prices could further stretch disposable incomes, while businesses that depend heavily on petrol-powered vehicles, generators and logistics may face higher operating costs.
International oil market conditions have also become a major factor in the latest price movements. Crude prices have risen sharply amid disruptions to global energy supplies linked to the conflict involving Iran and the wider Middle East, increasing the cost of petroleum products and putting pressure on refiners and fuel suppliers.
Despite the increase, Dangote Refinery continues to expand its role in Nigeria’s downstream petroleum market. The 700,000-barrel-per-day facility has increasingly supplied petrol and other refined products to the domestic market while also positioning itself for exports.
The refinery is also preparing for a major expansion that is expected to eventually double its processing capacity to 1.4 million barrels per day.
For motorists, the immediate concern will be how quickly the new wholesale price feeds into filling-station pump prices and whether further changes will follow if international crude prices remain elevated.
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