“Dangote Has Increased”: Petrol Cost Rises Again in Nigeria as Filing Stations Change Price

• The cost of petrol in Nigeria has increased to between N1,050 and N1,150 a litre, depending on the region
• This increase follows price increases by the Dangote Petroleum Refinery and a number of depot owners
• Due to the rising cost of crude oil, dealers anticipate that gas prices will continue to rise even further

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The price of petrol in Nigeria has gone up to between N1,050 and N1,150 per litre, depending on the area.

The hike comes after several depot owners and the Dangote Petroleum Refinery raised prices.

BusinessDay reported that because crude oil, the primary ingredient in gasoline manufacturing, is becoming increasingly expensive, dealers predict that petrol prices will continue to rise.

Festus Osifo, the national president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, previously anticipated this price increase.

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“The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo had said.

Meanwhile, the $20 billion Dangote Petrochemical Refinery recently increased the price of gasoline at its loading gantry from N899 to N955 per litre.

According to a new price tier that the refinery revealed in an email to its customers, customers who purchased between two and four million litres would pay N955 per litre, while those who purchased five million litres or more would pay N950 per litre.

This implies a 6.17% rise compared to the N899.50 per litre Christmas discount that was available in December of the previous year. According to the refinery's "Communication on PMS Price Review" notification, these modifications went into effect on Friday at 5:30 p.m.

The price hike has impacted the whole gasoline supply chain. Private depots have increased their pricing to N970 in Lagos and N1,000 in Calabar, even if they already had supplies.

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Significant changes were made to several depots: Sahara went from N950 to N970, Pinnacle went from N921 to N970, and NIPCO went from N950 to N980.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) predicts retail prices in Lagos and the neighbouring states will reach N1,100 per litre, with prices in the Federal Capital Territory possibly reaching N1,150.

IPMAN’s national publicity secretary, Chinedu Ukadike, explained:

“Yes, Dangote has increased its price to N955. This is only because of the increase in Brent crude. Once it increases, the domestic production cost will also increase.”

Retailers cannot sell at N1,000 per litre, according to the Petroleum Products Retail Outlet Owners Association of Nigeria, because their margins would have to be greater than N45.

While some members will continue to sell at N935 per litre under a deal with MRS Oil, IPMAN president Billy Gillis-Harry points out that prices will probably surpass N1,000 per litre once this agreement changes.

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Dangote refinery releases statement, confirms new petrol prices

Marketers address new petrol price

Legit.ng earlier reported that the Independent Petroleum Marketers Association of Nigeria (IPMAN) rejected claims that petrol prices will soon rise nationally.

In an interview with Voice of America, IPMAN chairman Bashir Salisu Tahir stated that since the nation now has refineries, prices are now set by market forces.

Tahir informed the public that none of their members had raised the price of petrol nationwide and reassured them that the refineries' operations would help to lower fuel prices across the country.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng