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Dangote increases petrol price amid global crude surge

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In a move that is set to impact the nation’s fuel market, Dangote Petroleum Refinery has announced an upward revision in the price of Premium Motor Spirit (PMS), commonly known as petrol.

Diaspora digital media (DDM) gathered that this change comes in response to the continuous rise in Brent crude prices, the global standard for crude oil.

As detailed in a communication sent to customers on Friday, the refinery indicated that its refined petrol would now be sold at N955 per litre at the loading gantry, marking a significant price hike.

The price adjustment, effective from 5:30 PM on the same day, means that marketers purchasing between 2 million and 4.99 million litres will now pay N955 per litre, while those buying 5 million litres or more will be charged N950 per litre.

This price change represents an increase of N55.5 per litre, or about 6.17%, compared to the N899.50 per litre set in December 2024, which had been part of a temporary holiday discount to ease the financial strain on Nigerians during the festive season.

The revision will apply to all stock balances that have not been lifted by the time of the price change and will also affect pending stock at the time of implementation.

Dangote’s new price regime is anticipated to cause ripple effects throughout the downstream petroleum sector, particularly affecting private depots and retail petrol markets.

These changes are expected to increase the cost of petrol across the country, with marketers likely to pass on the higher costs to consumers at the pump.

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The magnitude of the price hike underlines the increasing influence that Dangote Refinery wields on Nigeria’s fuel pricing structure.

Dangote Refinery, the largest of its kind in Nigeria, plays a pivotal role in the country’s petroleum industry.

As the largest supplier of refined products in the country, Dangote’s pricing decisions significantly influence the prices set by other depots and fuel marketers.

This new price adjustment will undoubtedly affect private depots and retailers who often align their prices with those set by Dangote, further intensifying the effect on consumers.

Experts in the oil and gas sector, such as Olatide Jeremiah, CEO of petroleumprice.ng, suggest that this price adjustment will likely trigger a similar increase in prices from other depots across the nation.

Jeremiah emphasizes that Dangote Refinery’s pricing power has become a dominant force in determining fuel costs.

“With Dangote’s immense capacity and influence on the market, private depots, major marketers, and independent marketers will have to adjust their pricing to compete with Dangote’s new rates,” he explained.

“Nigerians should brace for higher petrol pump prices as a result of this adjustment.”

As fuel prices are heavily linked to the cost of crude oil, the ongoing rise in the price of Brent crude—currently trading at $81.84 per barrel—has been cited as a primary factor driving this price increase.

The situation has been further compounded by the government’s decision to fully deregulate the downstream petroleum sector, which means that the government is no longer involved in setting fuel prices.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, recently addressed the situation, acknowledging that the international price of crude oil remains one of the most significant factors driving fluctuations in domestic petrol prices.

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He noted that since deregulation, price-setting has shifted entirely to market forces, leaving both marketers and refineries to determine prices based on global oil trends.

With Dangote Refinery making such a substantial price increase, it is likely that other key players in the industry will follow suit.

This could potentially lead to a nationwide surge in petrol prices, adding further pressure on Nigerian households and businesses already grappling with inflation.

The price hike comes at a time when many Nigerians are struggling with rising costs of living, and any increase in fuel prices is likely to have far-reaching economic consequences.

Higher petrol prices are expected to drive up transportation costs, leading to higher prices for goods and services throughout the country.

Despite the increased prices, Dangote Refinery has justified the move, citing the continued increase in Brent crude prices as a critical factor.

As the global price of crude oil continues to fluctuate, Nigeria’s reliance on imported refined petroleum products remains a major challenge for the country.

With Dangote’s refinery now in full operation, the company has the capacity to provide a significant portion of Nigeria’s petrol supply.

However, even with this local production, the prices of crude oil on the international market continue to exert substantial pressure on domestic fuel costs.

In conclusion, Dangote Refinery’s recent petrol price hike is a response to the surge in global crude prices, and it highlights the refinery’s growing influence on Nigeria’s downstream petroleum sector.

As Dangote leads the way in adjusting fuel prices, other marketers and depots are likely to follow, leading to higher petrol prices across the nation.

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This move, coupled with the continued volatility in global oil markets, could put additional strain on Nigerian consumers, especially as the country grapples with the challenges of a deregulated petroleum sector.

With petrol prices now largely driven by market forces, the road ahead for Nigerian consumers appears to be one of rising costs and economic uncertainty.

 


For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook

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