Dangote Refinery May Hike Petrol Price Again As Crude Oil Nears $100
- Industry sources say Dangote Refinery is considering a gantry price review as rising crude oil costs squeeze petroleum product margins
- Brent crude traded at $99.05 per barrel on Tuesday, gaining over 2% as global oil benchmarks climbed for a second consecutive day
- Petrol depot prices in Lagos, Warri and Port Harcourt are already elevated, with diesel selling as high as N1,935 per litre in Warri
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Dangote Refinery could raise its gantry price for petrol in the coming days if the ongoing surge in global crude oil prices continues to push up the cost of replacing petroleum products, industry sources have warned.
The concern follows a sustained climb in international oil benchmarks.
Source: UGC
At around 10:15 a.m. West Africa Time on Tuesday, September 7, Brent crude was trading at $99.05 per barrel, up $2.05 or 2.11 per cent on the day.
West Texas Intermediate rose $2.91, or 3.18%, to $94.39 per barrel.
The gains came on top of roughly four per cent growth recorded across the two previous trading sessions.
An industry source told Petroleumprice.ng that the pressure on suppliers had become increasingly difficult to absorb.
The source said:
"The benchmarks are rising, and they need to factor in replacement cost, so they might review their prices very soon."
The source added that the refinery was weighing the effect any price increase would have on consumers and their purchasing power before arriving at a final decision.
Depot Prices Already High Across Nigeria
Petrol and diesel prices at major depots across Nigeria were already running at elevated levels even before any possible adjustment by Dangote Refinery.
In Lagos, petrol was priced at N1,266 per litre at Pinnacle, N1,267 at MRS Tincan, N1,270 at Ascon and Aiteo, N1,279 at Integrated and Sahara, and N1,280 at Nipco.
Diesel prices were similarly firm, with Pinnacle quoting N1,830 per litre and Aiteo at N1,800.
Several depots, including Duport, Integrated, Ibeto, Ibachem, Gulf Treasure and Ascon, opened the day at N1,800 before some revised their rates to N1,790.
Bono and Sahara also quoted diesel at around N1,790, while Chipet ranged between N1,782 and N1,785.
Source: Getty Images
Warri and Port Harcourt Markets
Depot prices in Warri were higher still. A.Y.M. Shafa quoted diesel at N1,935 per litre, with Prudent at N1,860 and both Rainoil and Zamson at N1,850. Petrol in Warri ranged from N1,280 to N1,300 per litre.
In Port Harcourt, petrol sold between N1,280 and N1,295 per litre, while Bulk Strategic quoted diesel at N1,845 per litre.
Should Dangote Refinery go ahead with a gantry price increase, marketers would likely pass on the higher costs to their depot prices, which could translate into dearer fuel for end consumers.
NMDPRA explains why petrol prices
Earlier, Legit.ng reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pointed to a chain of supply-related factors as the reason petrol pump prices continue to fluctuate across Nigeria under the current deregulated framework.
George Ene-Ita, the authority's head of public affairs, explained during an interview.
Ene-Ita said that the full deregulation of petrol prices means that every variable within the supply chain is reflected in what consumers pay at the pump.
Source: Legit.ng
