The price of Premium Motor Spirit (PMS), commonly known as petrol, has risen sharply, now ranging between N1,050 and N1,150 per litre, depending on the location of purchase. This increase follows a hike in the cost of the commodity by the Dangote Petroleum Refinery and various depot owners, who have adjusted their prices in response to rising global crude oil costs.
Industry dealers have confirmed that the upward trend in PMS prices is likely to continue, as the cost of crude oil, a key component in fuel production, has been steadily climbing in recent weeks. Festus Osifo, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), had previously warned that petrol prices might rise further if crude oil prices continued to escalate. He noted that the price of crude oil had recently hit $80 per barrel, signaling a potential price increase for petrol in the coming weeks if the exchange rate remains unchanged.
On Friday, Dangote Petroleum Refinery implemented an upward adjustment in the price of petrol produced by its $20 billion plant. The new price at its loading gantry increased from N899 per litre to N955 per litre. According to a statement sent to customers, marketers buying between 2 million and 4.99 million litres will now pay N955 per litre, while bulk buyers of 5 million litres or more will be charged N950 per litre. This adjustment represents a 6.17% increase, up by N55.5 per litre from the previously discounted price of N899.50 per litre.
The new price regime took effect from 5:30 PM on Friday, and all stock balances yet to be lifted at the time of the price adjustment are to be repriced at the updated rates.
The ripple effects of this price increase have been felt across the downstream petroleum sector, especially in private depots and retail markets. Reports show that some private depots, even with existing stocks, raised their loading prices to N970 in Lagos and N1,000 in Calabar. For example, Sahara Depot increased its price by N20 to N970 per litre from N950, while Pinnacle Depot adjusted its price to N970 from N921. Other depots, including Wosbab and NIPCO, also raised their prices by N20 to N30 per litre.
Marketers from the Independent Petroleum Marketers Association of Nigeria (IPMAN) have forecasted that retail prices could climb as high as N1,100 per litre in Lagos and surrounding states, with consumers in the Federal Capital Territory (FCT) potentially paying N1,150 per litre. According to Chinedu Ukadike, IPMAN’s National Publicity Secretary, the surge in global crude oil prices directly affects domestic production costs, which will lead to higher retail prices.
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) also indicated that petrol prices at retail stations are expected to rise above N1,000 per litre.
Billy Gillis-Harry, PETROAN’s National President, explained that the price adjustment is due to the increase in the price of refined products from Dangote, which does not yet account for additional charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). He noted that the final retail price will also depend on logistics costs and the agreed-upon margin between retailers and suppliers.
