Dangote Refinery Implements Second Petrol Price Increase Within Days
Nigeria's fuel market experienced renewed price pressure on Friday as Dangote Refinery announced a significant increase in its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol. The refinery raised the price to N995 per litre, representing a sharp rise of N121 from its previous rate. This adjustment comes just days after an earlier price hike, further tightening conditions in the country's downstream petroleum sector and prompting marketers to announce new wholesale rates.
Rapid Successive Price Adjustments Shock Market
This latest increase marks the second time in a short period that Dangote Refinery has revised its petrol prices upward. On March 2, the refinery had already increased the ex-depot rate from N774 to N874 per litre, a move that had already triggered adjustments across the fuel supply chain as depot owners quickly raised their prices. The consecutive hikes have created a sense of urgency and uncertainty among industry stakeholders, with many scrambling to secure supplies amid the volatile pricing environment.
According to data obtained from industry sources, the new N995 per litre rate reflects the growing cost pressures facing refiners. The earlier increase had already led to visible changes in the market, and this second hike is expected to amplify those effects, potentially leading to higher retail prices for consumers across Nigeria.
Global Crude Oil Surge Drives Local Price Pressure
Industry analysts and sources attribute the latest price review to the continued surge in global crude oil prices, which has significantly elevated the cost of sourcing and replacing refined petroleum products. Brent crude, the international benchmark, recently climbed to $93.26 per barrel, representing an increase of approximately 9.19%. This rally in oil prices has directly impacted refinery feedstock costs, shipping expenses, and overall replacement values for products like petrol.
Under Nigeria's deregulated downstream petroleum sector framework, such global price movements are increasingly reflected in local depot and pump prices. Energy experts note that higher crude prices inevitably translate to increased costs throughout the supply chain, from refining to distribution, ultimately affecting end consumers.
Market Reactions and Regional Price Variations
Following the announcement, the impact is already being felt in the wholesale fuel market. Several depots are now quoting prices close to N1,000 per litre for PMS as marketers adjust to the higher replacement costs. In some locations, prices appear even steeper; for instance, market observations in Calabar revealed that a depot operated by Fynfield Oil & Gas had earlier sold petrol at around N1,050 per litre, one of the highest depot prices currently recorded in the country.
At the retail level, filling stations in Nigeria's North-West region were observed selling petrol at approximately N1,013 per litre, highlighting growing regional price differences driven by factors such as supply routes and logistics costs. These variations underscore the complex dynamics of Nigeria's fuel distribution network and the challenges faced by marketers in maintaining consistent pricing.
Suspension of Loading Adds to Uncertainty
Adding to the market tension, Dangote Refinery briefly suspended the loading of petrol at its facility early on Friday, around 2:00 a.m., before announcing the new price. This temporary pause reportedly created uncertainty among fuel marketers, many of whom had anticipated another adjustment and had moved to secure supplies in advance. Previous instances of loading suspensions at the refinery have sometimes preceded price adjustments, making this a closely watched indicator for industry players.
Marketers and depot operators are now closely monitoring the situation for possible further changes to petrol pricing. The combination of global oil price volatility and local operational factors suggests that the market may continue to experience fluctuations in the coming days, with stakeholders bracing for potential additional impacts on both wholesale and retail levels.
