Fuel Prices Set to Rise as Dangote Refinery Increases Cost to N955/litre
- Fuel pump prices are set to rise across Nigeria as Dangote refinery has announced an increase in the bulk cost of the product
- The price will increase from N909 effective since December, to N950 to N955, and will affect all unsold stock
- The company, in its statement, said the increase was triggered by the rising prices of crude oil globally
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Fuel pump prices are set to rise as the Dangote Petroleum Refinery has announced an increase in the bulk price of the product.
Premium Motor Spirit (PMS), also commonly known as petrol, will sell at N955/litre for marketers buying between 2 million to 4.99 million litres, while those buying above 5 million litres will buy at a unit price of N950/litre.
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VANGUARD reports that the company stated on Friday that rising global crude oil prices necessitated the price increase.
This price adjustment marks a 6.17% increase, translating to an additional N55.5 per litre compared to the previous discounted rate of N899.50 per litre offered during the December 2024 holiday season.
New prices take effect
In the notice titled "Communication on PMS Price Review," the company stated that the new pricing would take effect by 5:30 PM on Friday, January 17, 2025.
The price change will also apply to all pending orders and unsold stock. In December, the company announced a price crash to N899.50 to ease fuel scarcity and hike in transportation costs during the Yuletide season.
That move marked the beginning of a crash in fuel prices throughout December 2024, as the NNPC soon followed with a reduction in fuel prices, even below Dangote's price.
Dangote had earlier revealed plans to increase production by 30% from 500,000 barrels per day to 650,000 before June 2025.
This move would bring the refinery to full capacity and satisfy the fuel consumption needs of the Nigerian market, leaving room for exports.
In a recent Legit.ng report, the Independent Petroleum Marketers Association of Nigeria (IPMAN) noted that the association members were able to sell fuel lower than the NNPC outlets, because of their agreement with the Dangote Refinery.
They said this underscored the essence of the Petroleum industry's deregulation, as it allowed market forces and players to determine price.
Depot owners increase fuel price
In related news, Legit.ng recently reported that oil marketers might move camp to buy from the Dangote Petroleum refinery as the depot owners increased the ex-depot price from N909 to N950 per litre.
Since December, the refinery has sold at a price of N909 per litre but with a minimum order volume of two million litres.
The marketers were planning to pool orders together to be eligible to purchase directly from Dangote Refinery.
They were following the footsteps of MRS, Ardova Plc and Heyden that recently entered Bulk Purchase Agreements with the refinery.
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Source: Legit.ng
