By TheDailyNewsHub
The Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS), popularly known as petrol, by ₦85 per litre, raising its gantry price from ₦1,265 to ₦1,350.
The latest adjustment represents an increase of about 6.7 per cent and is expected to put further pressure on petrol prices across the country. The adjustment comes barely two weeks after Dangote increased its petrol gantry price from ₦1,200 to ₦1,265 per litre.
The previous ₦65 increase, which took effect on August 29, followed two earlier adjustments within the same month. The refinery’s petrol price had risen from ₦1,165 to ₦1,185 and subsequently to ₦1,200 before the August 29 increase to ₦1,265.
The latest increase also marks a significant change in the domestic pricing environment. Earlier in September, industry data from the Major Energies Marketers Association of Nigeria (MEMAN) showed Dangote petrol at ₦1,265 per litre, about ₦45 cheaper than imported petrol at an import-parity price of roughly ₦1,310 per litre.
With the new ₦1,350 gantry price, Dangote’s petrol is now above the import-parity benchmark previously reported by MEMAN.
The development comes amid continued volatility in international oil markets linked to the ongoing conflict in the Middle East. Industry operators have warned that rising crude and refined-product replacement costs are putting upward pressure on fuel prices in Nigeria.
Nigeria’s petrol market has already seen significant price increases in recent weeks, with pump prices varying across states depending on transportation, logistics and marketers’ margins. As at September 9, motorists in the Federal Capital Territory were paying between about ₦1,280 and ₦1,350 per litre, while some locations across the country were recording even higher prices.
The latest Dangote adjustment could therefore translate into higher acquisition costs for marketers and potentially lead to further increases at filling stations, although the eventual pump price will depend on the location and the margins applied by individual marketers.
The price increase comes at a time when the Dangote refinery is operating at high capacity and expanding its crude purchases. The refinery had secured at least 16 million barrels of Nigerian crude for October delivery, equivalent to roughly 520,000 barrels per day.
The refinery is also preparing for what is expected to be one of Africa’s largest initial public offerings. The latest petrol price increase is likely to renew concerns about the impact of fuel costs on transportation, food prices and household expenses, particularly as businesses continue to adjust to Nigeria’s post-subsidy fuel pricing regime.