Petrol Prices Exceed N1,000 Per Litre Nationwide as Dangote Refinery Increases Gantry Price
Petrol prices have surged above N1,000 per litre across several Nigerian states after the Dangote Petroleum Refinery raised its gantry price for Premium Motor Spirit (PMS) to N995 per litre. This significant increase is primarily attributed to rising global oil prices fueled by escalating geopolitical tensions in the Middle East.
Current Fuel Prices and Regional Variations
Checks in major cities reveal that petrol now sells between N1,000 and N1,190 per litre, depending on the location and specific filling station. In Abuja, prices range from N1,052 to N1,105 per litre, with stations like MRS Oil Nigeria Plc and NIPCO Plc adjusting their pumps accordingly. Lagos experiences even higher rates, with some outlets charging up to N1,190 per litre, while northern states such as Kaduna and Taraba report prices between N1,060 and N1,070 per litre. Notably, Gombe State records some of the highest prices nationwide, ranging from N1,080 to N1,250 per litre.
Impact on Transport and Small Businesses
The price hike is already affecting transport fares and the operational costs of small businesses. Commercial drivers in Abuja have increased fares from N400 to N700 on certain routes to compensate for the higher fuel expenses. Similarly, in Lagos, delivery riders like Augustine Akor have raised their charges due to the increased cost of petrol. Small business owners, such as boutique proprietor Chukwudi Anioke, express concerns about potential price increases for goods and services, as many rely on petrol-powered generators amid unstable electricity supply.
Global Factors Driving the Surge
Industry analysts link the petrol price surge to rising global crude oil prices, exacerbated by conflicts in the Middle East involving Iran, the United States, and Israel. The disruption of shipping routes through the Strait of Hormuz, a critical passage for approximately 20% of global oil and gas shipments, has contributed to supply constraints. Consequently, Brent crude prices have climbed above $90 per barrel, raising fears that fuel costs may remain elevated if the geopolitical crisis persists.
Public Reaction and Economic Concerns
Nigerians nationwide are voicing worries about the broader economic impact of the fuel price increase. Residents in states like Sokoto and Bauchi report that rising transport costs are exacerbating the cost-of-living crisis, with potential ripple effects on food prices and essential goods. Energy analysts warn that higher petrol prices typically lead to increased production and transportation expenses, which could trigger wider inflation across multiple sectors of the economy.
Refinery Adjustments and Market Dynamics
The Dangote Refinery has implemented its second price adjustment in a short period, raising the ex-depot petrol price to N995 per litre, marking a N121 increase. This follows a previous hike from N774 to N874 per litre, reflecting ongoing pressure from global market trends. Despite the price increases, fuel supply remains relatively stable across most filling stations, with no widespread reports of long queues or scarcity, although some panic buying was observed in states like Jigawa.
As petrol prices continue to fluctuate, stakeholders are closely monitoring developments, with many calling for measures to mitigate the economic strain on households and businesses.
