Dangote Raises Petrol Gantry Price 3 Times in 9 Days, Depot Prices Head to N1,300
- Dangote Petroleum Refinery raised its petrol gantry price three times within nine days, with the latest increase announced on August 29
- The three price adjustments pushed Dangote's PMS gantry price to N1,265 per litre, a cumulative rise of N100 per litre
- Depot prices across Lagos had not yet caught up with the new Dangote benchmark by the close of trading on August 28
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery raised its Premium Motor Spirit gantry price by N65 on August 29, bringing the figure to N1,265 per litre and marking the third upward adjustment in less than two weeks.
The refinery had previously moved its PMS price from N1,165 to N1,185 per litre on August 20, then again to N1,200 on August 25.
Source: Getty Images
Taken together, the three increases added N100 per litre to the refinery's benchmark price in nine days.
At the close of trading on Friday, August 28, depot prices tracked by Petroleumprice.ng had not yet absorbed the latest adjustment. In Lagos, terminals including Pinnacle, Bono, Integrated and African Terminal were selling at N1,201 per litre, while Aiteo held at N1,200.
That gap of roughly N64 to N65 below the new Dangote benchmark means depot operators will need to revise their prices as they replenish stocks at the higher refinery rate.
Depot Prices Could Push Towards N1,300
Marketers and independent petroleum product depots are expected to begin adjusting their prices in the coming trading sessions to reflect what it now costs to buy fresh supplies from the refinery.
The N1,300 per litre level is emerging as the next likely benchmark for the downstream market, though how quickly prices get there will depend on factors such as existing inventories, transport costs and each depot's profit margin.
Rising international crude oil prices are adding further pressure on the market. Brent crude climbed back above $90 per barrel on Monday, gaining more than 2% after US-Iran military strikes raised concerns about global oil supplies and the security of shipping through the Strait of Hormuit.
Higher crude prices increase the cost of importing or producing petroleum products, which could push replacement costs even further for Nigerian marketers.
Source: Getty Images
The combined effect of the Dangote refinery price hikes and firmer global crude benchmarks gives depot operators additional reason to review what they charge.
The immediate question for consumers and filling station operators across the country is how quickly the N1,265 per litre gantry price will work its way through the supply chain and into retail pump prices.
NNPC increase petrol price
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) and other filling stations in Abuja have increased the pump price of Premium Motor Spirit (PMS), also known as petrol.
Checks on Sunday, August 30 showed that several filling stations adjusted their prices.
The latest increase has been reflected in petrol prices across Abuja, with motorists now paying more at several filling stations.
Source: Legit.ng
