Dangote Petroleum Refinery has raised the gantry price of Premium Motor Spirit to N1,175 per litre, marking the third upward adjustment within a week.
The refinery announced the price hike to marketers on Monday, raising the gantry price of Premium Motor Spirit to N1,175 per litre from N995 per litre announced on Friday, representing an increase of N180 or about 18.1 per cent within three days.
The latest revision marks the fourth consecutive price review in less than two weeks.
What Dangote Refinery is saying
Dangote blamed the development on the cost of production and market volatility.
- “Yes, the gantry prices have been adjusted. PMS is now N1,175 per litre while Automotive Gas Oil is N1,620 per litre.
- “The market has been extremely volatile, and replacement costs have shifted significantly in recent days. These adjustments reflect prevailing market fundamentals and the cost environment we are currently operating in,” an official confirmed.
The development came after the refinery suspended petrol loading operations and restricted truck-out activities, which had fuelled speculation among market participants about an imminent price adjustment.
What this means
The latest revision marks the fourth consecutive price review in less than two weeks, highlighting mounting pressure in Nigeria’s downstream petroleum market amid global oil price volatility.
Under the revised structure, the N1,175 per litre petrol price represents a sharp increase from the previous N995 per litre.
Motorists are likely to now purchase petrol from fuel stations at a rate above N1,200 per litre, compounding economic woes for passengers and the larger masses.
What you should know
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the pump price of Premium Motor Spirit (PMS) may hit N2,000 per litre amid the ongoing Middle East tension.
- PETROAN urged the Nigerian National Petroleum Company Limited (NNPCL) to urgently strengthen domestic refining capacity as a strategic step to shield Nigeria from global petroleum market shocks.
- The National President of PETROAN, Billy Gillis-Harry, made the call in Port Harcourt while delivering a keynote address titled “Deconstructing Energy Trilemma,” organised by the Department of Petroleum Economics and Policy Studies at Ignatius Ajuru University of Education.
- This is according to a statement signed by the National PRO of PETROAN, Dr. Joseph Obele, obtained by Nairametrics on Monday.
The association specifically called on the Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, to facilitate the immediate commencement of production at Nigeria’s local refineries, particularly the Area 5 Plant at the Port Harcourt Refinery and the Warri Refinery.
- Harry noted that the ongoing conflict involving Israel, the United States, and Iran is pushing global petroleum prices to alarming levels.
- He explained that before the crisis, Premium Motor Spirit (PMS) sold at N774 per litre but now sells above N1,000 per litre, representing an increase of about 30%.
Automotive Gas Oil (AGO), also known as diesel, previously sold at N950 per litre but has risen above N1,400 per litre.
Projecting future trends, he warned that PMS could rise close to N2,000 per litre while AGO may approach N3,000 per litre if the situation persists.
