Dangote Refinery Increase Petrol Price by N100 per Litre
- Dangote Petroleum Refinery made three separate petrol price increases within eight days, totalling N100 per litre
- A senior refinery executive said the price changes reflected the cost of crude oil already purchased, not just current global market rates
- Petroleum marketers warned that the frequent adjustments are making inventory planning and cost management increasingly difficult
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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 has raised the pump price of Premium Motor Spirit (PMS) by a total of N100 per litre across three separate increases carried out within eight days, pushing its gantry price from N1,165 to N1,265 per litre.
The first adjustment took effect on August 21, when the refinery moved its gantry price from N1,165 to N1,185 per litre.
Five days later, on August 26, a further N15 increase brought the price to N1,200 per litre.
Source: Getty Images
The largest of the three moves came on August 29, when the refinery added N65 per litre, setting the new gantry price at N1,265. The cumulative rise represents an increase of about 8.6% over the eight-day period, Petroluemprice.ng reports.
The latest adjustment also pushed the refinery's coastal PMS price from N1,582,380 to N1,669,545 per metric tonne.
Why Dangote Says Prices Are Rising
A senior executive at the refinery, who asked not to be named because he was not authorised to speak publicly, told the Punch that pricing decisions at Dangote are driven by the actual cost of crude oil already purchased and delivered for processing, not simply by daily movements in international benchmarks.
The executive outlined how crude procurement works in practice: negotiations must be concluded, loading windows secured, vessels chartered, cargoes loaded, and then the crude shipped to Nigeria before it can be discharged into storage.
All of that takes time, meaning there is often a significant gap between when crude is bought and when it is refined into petrol.
He added that crude already sitting in storage may have been purchased when global oil prices were considerably higher, and a subsequent fall in international crude prices does not reduce the cost of inventory already acquired.
Source: Getty Images
Data from the Major Energies Marketers Association of Nigeria showed that the refinery's gantry price stood at N1,200 per litre as of August 27, while the estimated spot import-parity price at that point was N1,222.32 per litre.
The N65 increase announced on August 29 then took Dangote's price above that comparison figure.
Diesel prices crash
Earlier, Legit.ng reported that Dangote Petroleum Refinery has increased its Automotive Gas Oil (AGO) pump-out price by N100 per litre, moving the rate from N1,570 to N1,670, with the new pricing taking effect from midnight.
The adjustment represents a 6.4% rise and reverses a period during which the refinery had held its diesel price steady. Pricing information seen on Thursday confirmed the new gantry rate.
At N1,670 per litre, the refinery's diesel price sits N21 above the current diesel landing cost of N1,649 per litre.
Source: Legit.ng
