Petrol Hits N1,395/Litre as Dangote Hikes Price Again

Petrol prices have risen to as high as N1,395 per litre in parts of Nigeria following another increase in the gantry price of Premium Motor Spirit by the Dangote Petroleum Refinery.

The refinery raised its petrol gantry price from N1,265 to N1,350 per litre, representing an N85 increase effective Saturday, September 12.

The latest adjustment has prompted several filling stations to review their pump prices, although some outlets had yet to implement the increase.

In Abuja, MRS filling stations increased their petrol price from N1,350 to N1,395 per litre, while some NIPCO outlets raised their price to N1,430 per litre. Other marketers have also adjusted their prices as they respond to higher wholesale costs.

The latest Dangote increase is the refinery’s fourth upward review of its petrol gantry price since August 21.

The refinery initially raised its price from N1,165 to N1,185 per litre on August 21, before increasing it to N1,200 on August 26. It later raised the price to N1,265 on August 29.

With the latest N85 increase, Dangote’s petrol gantry price has risen by N185 per litre, or about 15.9 per cent, in 22 days.

The successive increases have been linked to rising global crude oil prices and higher costs across the downstream petroleum market.

Brent crude, the international benchmark for Nigeria’s oil, has recently traded above $107 per barrel, putting additional pressure on domestic petrol prices.

The latest increase is expected to further raise transportation and operating costs for businesses and households if more filling stations adjust their pump prices.

However, prices remain different across locations and outlets, reflecting differences in supply costs, transportation expenses and individual marketers’ pricing decisions.

Motorists are therefore facing renewed pressure at the pump as the latest Dangote adjustment works its way through the fuel distribution chain.

The development also highlights the sensitivity of Nigeria’s deregulated petrol market to movements in crude oil prices and changes in refinery and import-related costs.