In response to the rising price of Brent crude, the global oil benchmark, Dangote Petroleum Refinery has announced a new price structure for Premium Motor Spirit (PMS), commonly known as petrol. This price adjustment reflects the refinery’s response to global market pressures, impacting fuel costs across Nigeria.
New Price Structure:
In a statement issued via email on Friday, Dangote Refinery revealed that the new ex-depot price for PMS will be ₦955 per litre at the loading gantry. This pricing applies to marketers purchasing between 2 million and 4.99 million litres. For bulk buyers purchasing 5 million litres or more, the price is slightly reduced to ₦950 per litre.
This price adjustment marks a ₦55.5 increase or 6.17% rise from the previous ₦899.50 per litre price offered as a holiday discount in December 2024. The new pricing structure will take effect today at 5:30 PM and applies to all unsold stock balances and pending orders.
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Official Notice:
In the official communication titled, “Communication on PMS Price Review,” the refinery stated:
“Dear Esteemed Customer,
Trust this email finds you well.
Kindly be advised that effective from 5:30 PM today, an upward adjustment has been implemented on the gantry price of Premium Motor Spirit.
Previous Price (NGN/Litre):
- 2 million–9.99 million litres: ₦899.50
- 10 million litres & above: ₦895
New Price (NGN/Litre):
- 2 million–4.99 million litres: ₦955
- 5 million litres & above: ₦950
Please note that all stock balances yet to be lifted as of the stated time are to be repriced at the new rates.”
Impact on the Downstream Petroleum Industry:
The revised pricing is expected to ripple across the downstream petroleum industry, affecting private depots, major marketers, and independent marketers. This move will likely lead to higher petrol pump prices nationwide.
Oil and gas expert Olatide Jeremiah, CEO of Petroleum Price.ng, emphasized the significant market influence of the Dangote Refinery. He stated, “Dangote Refinery’s influence on fuel pricing is unmatched. Private depots, major marketers, and independent marketers must now align with this new pricing structure, which inevitably means Nigerians should prepare for a surge in petrol pump prices.”
Market Reactions and Economic Implications:
The price hike is poised to impact transportation costs, logistics, and household budgets across Nigeria. Higher fuel costs are likely to contribute to inflation, raising the prices of goods and services.
Industry stakeholders warn that the increase in depot prices will pressure retailers to adjust pump prices, potentially pushing fuel prices beyond ₦1,000 per litre. Consumers are advised to brace for the economic impact as transportation fares and commodity prices may rise.
Government and Regulatory Response:
As the market adjusts to Dangote Refinery’s new pricing, attention turns to the Nigerian government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Industry analysts are calling for measures to stabilize fuel prices, such as supporting local production and strengthening the Naira to reduce import costs.
The Dangote Refinery’s price adjustment to ₦955 per litre reflects the direct impact of global oil market volatility on Nigeria’s fuel industry. With private depots and marketers set to align with this new pricing, Nigerians should expect rising pump prices in the coming weeks. The need for proactive government intervention has never been more urgent to cushion consumers against these economic shocks.
