The ex-depot price of Premium Motor Spirit has been increased by Dangote Refinery to N1,350 per litre.
A top official from Dangote Refinery and the pricing platform Petroleum price acknowledged the most recent change on Wednesday, which is N75 more than the previous N1,275 per litre, supports the market’s current trend of regular price adjustments.
According to the official, the new gantry price has been applied to all loading routes, compelling marketers to promptly modify their pricing templates in the face of limited availability and changing cost realities.
“The new pricing template has been activated across the board,” stated a senior source with knowledge of the development. Marketers have already modified their depot prices in response to the updates to all loading locations. This shift is not unique; rather, it is a reflection of the system’s current supply and cost challenges.
Only a week has passed since Dangote Refinery increased its ex-depot price from N1,200 to N1,275 per litre, underscoring the downstream market’s quick changes and the refinery’s increasing sway on domestic fuel prices.
Additionally, this is the second N75 increase in a span of seven days.
A senior management executive of the Dangote Group recently disclosed that the Dangote Petroleum Refinery has been subsidizing the gasoline and diesel it exports to the Nigerian market in spite of these upward modifications.
The recent surge coincides with the temporary suspension of pro forma invoice issuing earlier this week, which market participants claim further limited product availability and accelerated price increases across the downstream value chain.
“A short-term supply squeeze was caused by the suspension of PFI, Depot prices will inevitably rise when you mix it with changes in global oil pricing and logistics expenses. We are witnessing a direct reaction of the market to those truths.
Dangote Refinery has changed its petrol prices several times in the last month to account for shifts in local distribution dynamics, foreign exchange constraints, and the cost of acquiring oil.
The increase highlights a larger pattern of persistent price volatility associated with the refinery’s changing pricing policy since it started controlling local supplies.
In response to competition and inventory accumulation, it had previously lowered prices somewhat. However, as supply tightened and oil prices increased globally, it reversed direction.
The frequent price fluctuations indicate a time of transition in Nigeria’s deregulated petroleum market, where imports are starting to be replaced by domestic refining, while it is still subject to global cost fluctuations.
As marketers pass on the additional costs to consumers already struggling with inflation and high transportation costs, the increase is anticipated to cascade into higher pump prices nationwide.
However, the impact on everyday living expenses continues to be the primary concern for millions of Nigerians, since any increase in gasoline prices could drive up transportation costs and commodity prices.
