Fuel cost expected to reach N1,050

The Dangote Petroleum Refinery has implemented a substantial price hike, increasing its Premium Motor Spirit gantry price to N995 per litre, which marks a significant N221 surge within a mere four-day period.

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This development unfolds against the backdrop of tumultuous global crude oil prices and escalating replacement costs, creating a volatile market environment.

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A senior refinery official, speaking on condition of anonymity, confirmed the price adjustment to Saturday PUNCH on Friday night, attributing the change to recent fluctuations in global oil market fundamentals.

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The official explicitly stated, "Yes, the price has been reviewed, and the new gantry price is now N995 per litre," thereby validating the price increase.

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The revised price represents a notable increase from the previously introduced N874 per litre, which was implemented earlier in the week following the refinery's decision to raise its ex-depot price from N774 to N874 per litre.

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With this latest revision, the refinery's petrol price has experienced a dramatic climb from N774 to N995 per litre within a brief four-day span.

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Verification on petroleumprice.ng confirmed that the new gantry price had already been updated on the portal, indicating a shift in domestic downstream pricing benchmarks.

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The latest price adjustment is likely to trigger a fresh increase in retail pump prices across the country, with petrol potentially selling above N1,050 per litre in various locations, depending on transportation costs and marketers' margins.

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This development follows a brief, yet significant, halt in petrol loading operations at the refinery, which sparked speculation among marketers that another price increase might be imminent.

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Industry sources revealed that truck-out operations for petrol were suspended at approximately 2:00am on Friday, leaving depot owners and bulk marketers uncertain about the refinery's next pricing direction.

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Market participants noted that similar pauses in petrol loading at the facility have historically preceded price adjustments, establishing a pattern of behavior.

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Refinery officials have consistently defended their pricing decisions, emphasizing that petrol prices must reflect prevailing global crude oil prices, logistics costs, and operational realities.

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In a statement issued on Thursday, the refinery emphasized that it does not arbitrarily determine prices but rather adjusts them based on international market movements and the cost of crude oil used for refining.

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The refinery's pricing strategy is designed to reflect Nigeria's transition to a fully deregulated downstream petroleum market, where petrol prices are now largely influenced by global crude oil prices, foreign exchange rates, and supply dynamics.

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The refinery claims to have absorbed approximately 20 percent of the rising costs to help alleviate pressure on the domestic market.

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Amid escalating tensions in the Middle East, data from the Major Energies Marketers Association of Nigeria has shown that a litre of imported petrol is approximately N64 cheaper than the one produced by the Dangote Petroleum Refinery.

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According to MEMAN data, Dangote's petrol gantry price was N874 per litre as of Monday, while the landing cost of imported petrol was N809.37 per litre, revealing a difference of about N64 between the two sources.

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MEMAN also reported that Dangote's diesel price was N1,169.42, whereas imported diesel was priced at N1,125.70 per litre, further highlighting the disparity between the two.