The retail price of Premium Motor Spirit (petrol) has surged to between N1,030 and N1,150 per litre due to recent price hikes by Dangote Refinery and increased ex-depot costs.
On Friday, Daily Post reported that the $20 billion Dangote Refinery implemented a new ex-depot price increase, raising the cost from N899 per litre to N955 per litre.
In an email to its customers, Dangote Refinery outlined the updated pricing structure: marketers purchasing between two million and 4.99 million litres will now pay N955 per litre, while those buying five million litres or more will pay N950 per litre. This marks a N55 or 6.17% increase from the previous N899.50 per litre, which had been introduced as a holiday discount for Nigerians last December.
The price hike by Dangote Refinery has triggered varying adjustments in retail petrol prices across filling stations nationwide.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, confirmed that the product could now sell for over N1,100 per litre at members’ filling stations across the country.
“Commuters will likely pay over N1,150 per litre at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980.
“This change is immediate because crude oil price increase, too, is immediate,” he stated.
Meanwhile, the president of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said although it is too early to project petrol retail price after Dangote Refinery’s upward price review, it is certain that the product would cost more.
“Because right now, we still have an obligation with the MRS to be selling at N935, and some of us bought products there.
So, if they change their prices because of the Dangote price, then the conversation will be different.
“After the price of buying, there must be the price of logistics. Once that is computed, we can then look at what is the most humane profit margin,” he stated.
Meanwhile, it was gathered that some filling stations in the federal capital territory, Abuja, had already effected at least a N50 adjustment to their petrol prices.
For instance, those selling on Friday morning at N980 per litre have increased to between N1040 and N1,155 per litre.
Meanwhile, the Nigerian National Petroleum Company Limited retail outlets still sell petrol at 965 per litre as of Friday evening.
Recall that depot owners on Thursday had also increased their petrol prices.
Five days ago, It was reported that a petrol price hike is imminent as crude oil price increases hit $81 per barrel.
Recall that in December last year, petrol prices reduced to around N935 and N1100 per litre nationwide.
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