Dangote Refinery increases petrol price again as crude rally hits Nigeria

Dangote Petroleum Refinery has raised the gantry price of Premium Motor Spirit, popularly called petrol, by ₦85 per litre, signalling another round of upward pressure on pump prices across Nigeria.

The refinery’s wholesale price increased from ₦1,265 to ₦1,350 per litre, representing a 6.7% rise, as international crude oil prices and the cost of replacing petroleum products continue to climb.

The new price also places Dangote’s petrol above the prevailing landing-cost benchmark of about ₦1,311 per litre, potentially forcing depot owners and independent marketers to reassess their prices as they replenish stock.

Market pressure is already spreading beyond Lagos to major petroleum trading centres including Warri, Port Harcourt and Calabar, although individual depot prices continue to vary depending on stock levels, product source and market conditions.

The latest increase comes amid another sharp rally in international crude prices. Brent crude recently moved above $100 per barrel as renewed tensions in the Middle East raised concerns over production and shipping disruptions around major oil routes.

Dangote had initially kept its gantry price at ₦1,265 despite rising global costs but has now adjusted its position as replacement expenses increased.

The refinery’s pricing has become a major reference point for Nigeria’s deregulated downstream petroleum market, with changes at its gantry increasingly feeding through to depots and filling stations.

The latest increase follows a period of frequent price movements. Dangote reduced petrol to ₦1,175 per litre in June after Middle East tensions eased and crude prices fell, before cutting it further to ₦1,165 in August.

The trend later reversed. The refinery raised petrol to ₦1,185 on August 21, followed by further increases that took the price to ₦1,265 by August 29.

The latest ₦1,350 wholesale price raises the possibility of another increase at filling stations if crude prices remain elevated and marketers pass higher replacement costs to motorists.

SOURCE: NEWSSCROLL