Private petroleum depot owners have begun raising the loading prices of petrol and diesel across Nigeria's major distribution hubs, days after the Dangote Petroleum Refinery announced it would conduct all gantry and coastal product sales exclusively in U.S. dollars. The adjustments, recorded at depots in Lagos, Port Harcourt and Warri within 24 hours of the policy announcement, saw petrol prices climb by as much as N113 per litre in some locations, while diesel loading prices rose by up to N150 per litre, according to data from Petroleumprice.ng.
Dangote Refinery's Dollar Policy Triggers Price Hikes
The Dangote Refinery stated that the switch to dollar-denominated pricing covers Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK). Industry sources said the policy stems from the refinery's growing exposure to foreign exchange costs, after a larger portion of its crude oil purchases began being settled in dollars while refined product sales had continued to be conducted in naira, as reported by Punch.
In Lagos, four depots — African Terminal, Ascon, Integrated and Sahara — each moved their petrol loading price from N1,090 to N1,120 per litre. On diesel, African Terminal lifted its price from N1,430 to N1,500 per litre, Ibachem and Ibeto each raised theirs from N1,445 to N1,500 per litre, and Wosbab adjusted its price from N1,450 to N1,510 per litre.
Sharpest Movements Recorded in Port Harcourt
Port Harcourt recorded the sharpest movements. Matrix Depot raised its petrol loading price from N1,137 to N1,250 per litre, a jump of N113 per litre, and also recorded the largest diesel increase in the survey, moving its AGO price from N1,500 to N1,650 per litre, a rise of N150 per litre.
In Warri, Matrix raised petrol from N1,120 to N1,230 per litre, Optima moved its price from N1,117 to N1,141 per litre, and Rain Oil adjusted upward from N1,130 to N1,170 per litre. Diesel prices in the same city also shifted, with NIPCO moving from N1,485 to N1,571 per litre, Rain Oil from N1,485 to N1,560 per litre, and Prudent from N1,540 to N1,550 per litre.
IPMAN Warns of Further Retail Price Increases
Earlier, the Independent Petroleum Marketers Association of Nigeria (IPMAN) cautioned that Nigerians could soon pay more for petrol if the Dangote Petroleum Refinery begins selling refined petroleum products in U.S. dollars instead of naira. The warning follows reports that the 650,000-barrel-per-day refinery is considering a return to dollar-denominated transactions amid rising foreign-exchange obligations and concerns about crude oil supply. He noted that such a decision would not be unexpected given the financial pressures facing the facility.
