- Petrol prices are again rising fast following the new price increase by the Dangote Refinery earlier last week
- The latest price increase has rippled through the petroleum downstream industry, with marketers adjusting their prices to stay competitive
- Similarly, filling stations have announced increases, especially Dangote Refinery-backed outlets as depot prices near N1,300 per litre
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Petrol prices are rising across Nigeria as fuel marketers adjust their depot rates following another increase in the ex-depot price of Premium Motor Spirit (PMS) by the Dangote Refinery.
The latest adjustment has triggered fresh concerns among consumers and industry watchers, with depot prices now approaching N1,300 per litre and filling stations beginning to reflect the higher costs at the pumps.
Credit: Picture Alliance/Contributor
Source: UGC
Marketers raise depot prices
Fuel importers and petroleum marketers have rapidly revised their selling prices following the latest price adjustment by the Dangote Refinery.
Data from PetroleumPriceNG showed that petrol prices have risen by nearly 6%, with several major suppliers now quoting prices above the refinery’s latest gantry rate.
Among the marketers with elevated PMS prices are Optima at N1,274 per litre, Soroman at N1,268, Keonamex at N1,273, while AITEO and Sobaz are both selling at N1,270 per litre.
The increases are already being felt at filling stations, with the Nigerian National Petroleum Company Limited (NNPC) outlets reportedly raising their pump prices by as much as N75 per litre, according to an earlier report by Legit.ng.
Dangote Refinery-backed filling stations, including MRS, Ardova Plc and Sunbeth, have also increased their prices amid the latest market adjustments.
Analysts question fresh increases
The speed and scale of the latest increases have sparked criticism from some analysts, who argue that the development could undermine competition in the downstream petroleum market and place consumers under greater financial pressure.
“We are seeing an anomaly in the downstream industry,” Osas Igho told Legit.ng on a call from Benin, Edo State.
“Crude oil prices are not that expensive compared to March, April and May. So, why are petrol prices rising? This is no longer competition. This is a complete rip off,” he said.
The latest petrol increases could also have wider consequences for households and businesses as higher fuel costs typically feed into transportation, logistics and the prices of goods and services.
Transport operators may seek to adjust fares to offset rising operating expenses, potentially adding another layer of pressure on consumers already dealing with elevated living costs.
Dangote explains N65 increase
The Dangote Refinery has defended its latest N65 per litre petrol price increase, attributing the adjustment to the cost of crude oil purchased earlier when Brent crude traded above $95 per barrel.
The refinery’s explanation comes amid growing scrutiny of petrol price movements and the relationship between crude oil costs, refining expenses and pump prices.
Credit: Novatis
Source: Getty Images
However, checks by Legit.ng showed that the refinery has increased its PMS price by N365 per litre in August alone.
The refinery implemented three upward price adjustments during the review period, intensifying concerns about the direction of petrol prices and their impact on Nigerian consumers.
With depot prices already nearing N1,300 per litre, further adjustments by marketers could translate into higher pump prices in different parts of the country if the current trend persists.
Petrol prices rise to N1,400 per litre
Legit.ng earlier reported that the recent petrol price hikes implemented by Dangote Refinery have seen prices nearing N1,400 in some regions of Nigeria.
Amidst rising living costs, this situation has ignited intense scrutiny, especially given that these increases follow a drop in international crude oil prices.
Source: Legit.ng