Victor EzejaThe recent hike in Premium Motor Spirit (PMS) price by the Dangote Petroleum Refinery has sparked fresh concerns among Nigerians, amid rising global oil prices and geopolitical tension.
The 650,000 barrels per day refinery increased its ex-depot price of PMS to N852 per litre, from N820 sold previously.
Join our WhatsApp ChannelThis represents a N32 or 3.90 per cent increase in the ex-depot price of PMS. This development raises fears of a potential surge in the pump price of the commodity at retail outlets across the country.
The updated price revealed by an industry platform, petroleumprice.ng, took effect on Thursday.
Earlier reports indicated that the refinery halted loading activities last week. It, however, resumed with the new price.
When the refinery slashed its gantry price from N840 to N820 per litre, early last month, its partners, MRS, Ardova PLC, Hyden, and Mobil, among others, sold at N865 per litre in Lagos and N885 in Abuja and other parts of north north-central region.
With the latest development, Prime Business Africa observed that some of the Dangote partners like Ardova PLC have increased the pump price to N910 as of Thursday.
While the refinery is yet to issue a public statement on the latest price adjustment, analysts have attributed it to the recent fluctuations in global crude oil prices.
Since it came on stream in 2024, Dangote refinery has become a dominant player in the downstream petroleum market in Nigeria. Its entry into the market has also created intense competition. It has occasionally slashed prices, putting other marketers on edge, as they struggled to put up competitive prices.
Faced with the challenge of domestic crude supply shortage, the company has been relying heavily on imports for the refinery’s feedstock. This predisposes it to the vagaries of crude prices in the international market.
Its latest plan to begin nationwide direct distribution of petrol and diesel is to end-users, absorbing logistics costs, is believed to reduce costs.
The Refinery’s pricing shifts reflect broader global and local market dynamics. While occasional reductions provide temporary relief, sustained stability depends on geopolitical calm, crude oil trends, and Nigeria’s refining capacity. Consumers and marketers remain wary of further hikes, especially amid ongoing supply chain uncertainties.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
