Dangote Refinery Increases Petrol Price By N65/Litre

The Dangote Petroleum Refinery has raised its gantry price of premium motor spirit, popularly known as petrol, by N65 per liter, barely three days after its last increase.

The latest adjustment, which takes the refinery’s gantry price from N1,200 to N1,265 per liter, takes effect on Saturday.

It is the third price increase by the refinery in eight days, bringing the total rise within the period to N100 per liter, or 8.6 percent.

The latest adjustment was contained in a price change communication from Dangote Petroleum Refinery and Petrochemicals FZE sighted by Sunday PUNCH.

The refinery also increased its coastal price from N1,582,380 to N1,669,545 per metric tonne.

It directed customers to return all existing authorizations to collect for repricing before loading.

“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption,” the company stated.

The latest increase represents a 5.4 percent rise in the gantry price.

The refinery had on August 21 increased its petrol price from N1,165 to N1,185 per liter before raising it by another N15 to N1,200 on August 26.

With Saturday’s adjustment, the refinery has increased its petrol price by N100 per liter in just over a week.

The development is expected to trigger fresh adjustments in depot and retail prices as marketers reprice their products to reflect the higher cost of supply.

The latest increase comes amid volatility in the international oil market and concerns over crude supply and logistics costs.

According to industry pricing platform Petroleumprice.ng, the latest adjustment may be linked to a rise in freight rates.

The development is also coming against the backdrop of concerns over the impact of the Iran-US conflict on global crude supply and petroleum product prices.

Following the refinery’s previous adjustment on August 26, independent petroleum marketers warned that fluctuations in crude prices, foreign exchange, and other market variables were making business planning increasingly difficult.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, had said petrol was already selling between N1,250 and N1,300 per liter in some locations.

He warned that further disruptions in the international oil market could worsen price volatility and increase pressure on consumers.

The latest Dangote adjustment means its gantry price is now N265 above the N1,000 per liter threshold, raising the prospect of further increases in retail petrol prices and transportation costs.

The Dangote refinery, Africa’s largest oil refinery, has a nameplate capacity of 700,000 barrels per day and has emerged as a major supplier of refined petroleum products to the Nigerian market.

Reuters recently reported that the refinery was operating near its 700,000-barrel-per-day capacity, while between 30 and 40 percent of its crude feedstock was being imported.

The reliance on imported crude exposes the refinery to movements in international crude prices, freight charges, and other logistics costs.