Fuel Stations Begin Price Adjustments After Dangote Refinery Hike
Nigerian filling stations have started adjusting petrol pump prices following recent increases in ex-depot and ex-gantry rates by Dangote Refinery and other fuel depot operators. This signals the likelihood of higher fuel costs for motorists in the coming days. The price changes come after Dangote Refinery raised its ex-gantry petrol price by N44 per litre, from N1,076 to N1,120, following its decision to adopt dollar-denominated pricing for petroleum products.
According to PetroleumPriceNG, several Dangote-linked marketers have revised their pump prices upward in response to the higher supply costs. Mobil has increased its petrol price to N1,150 per litre, up from N1,120, while Lado Oil now sells the product at N1,150 per litre, compared to its previous price of N1,130. However, not all marketers have followed suit. Ardova Plc (AP) and MRS have retained their petrol price at N1,120 per litre, offering temporary relief to consumers despite the refinery's latest increase.
Reasons Behind the Price Increases
Although Dangote Refinery has stated that the price increase is not directly linked to its shift to dollar-based pricing, depot operators have also raised their rates in response to rising international oil prices and foreign exchange concerns. Earlier reports showed that depot prices climbed by more than N100 per litre, driven by renewed tensions between the United States and Iran around the Strait of Hormuz, a critical global shipping route through which about 20% of the world's oil supply passes. The spike in international crude oil prices has forced marketers to review their landing costs and retail pricing.
More Increases Expected as Old Stocks Deplete
Energy policy analyst Osas Igho said the impact of the latest price increase has not been fully felt because many filling stations are still selling fuel purchased before the latest adjustment. "Most filling stations are still dispensing old stocks, so the price difference is not so clear," Igho said. He added that as existing inventories are exhausted, more filling stations are expected to revise their pump prices upward over the next few days.
Calls for Government Intervention
The latest fuel price increases have renewed concerns over the rising cost of living in Nigeria. Industry analysts have urged the Federal Government to introduce temporary measures to cushion the impact of higher petrol prices on households and businesses. They warned that continued increases could worsen inflation and place additional pressure on transportation, food prices and other essential goods across the country.
