Petrol: Ɗangote Refinery raises price to ₦955/litre

Ɗangote Refinery raises price

…As crude oil hits $82/barrel

The Ɗangote Petroleum Refinery has announced a hike in the price of Premium Motor Spirit (PMS), a.k.a petrol, citing the rising cost of crude oil in the global market. 

Ɗangote Refinery raises price2

The new pricing structure, released in a statement yesterday, sets the bulk purchase price of Premium Motor Spirit (PMS) at ₦955 per litre for buyers purchasing between 2 million and 4.99 million litres, while those buying 5 million litres or more will pay ₦950 per litre.

This adjustment marks a 6.17% increase, equivalent to ₦55.5 per litre, compared to the discounted December 2024 holiday rate of ₦899.50 per litre. The new rates were effective from 5:30 pm yesterday, affecting all unsold stock balances and pending orders.

The Refinery attributed the price hike to escalating crude oil prices, which have risen significantly in recent days. 

Global oil prices, including Nigeria’s Bonny Light, increased by 5.1% to $82 per barrel from $78 per barrel, adding pressure on refiners.  Recall that on Thursday, the Organisation of Petroleum Exporting Countries (OPEC) announced that the increase reflects on-going market instability and uncertainties expected to persist throughout 2025.

Motorists in Lagos and surrounding areas have rushed to filling stations amid fears of further price increases. Some filling stations have already adjusted their prices upwards, raising concerns about a potential spike in pump prices beyond ₦1,000 per litre.

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, emphasised that petrol price fluctuations are now determined by international crude oil prices. Speaking at the inaugural meeting of the Petroleum Industry Stakeholders Forum (PISF) in Abuja, Lokpobiri reaffirmed that the downstream sector is fully deregulated, with the government no longer involved in setting prices.

“The essence of deregulation is for prices to find their level”, Lokpobiri said, adding that: “as oil prices rise, petrol prices will also rise, and as oil prices fall, petrol prices will adjust accordingly. The government’s primary concern is ensuring quality control, availability, and proper dispensation of products”.

Lokpobiri further said that competition in the market offers consumers choices, preventing long queues at filling stations.

Oil Marketers appeal

Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), Huub Stockman, explained that while crude oil prices impact petrol prices, the effect may not be immediate. “Crude and product prices don’t always directly correlate. It takes time for changes in crude oil prices to reflect in derivative products”, he stated.

The PISF, modeled after the Bankers’ Committee, aims to provide a platform for stakeholders in the oil and gas industry to address issues collaboratively.

This latest price adjustment highlights the broader impact of global oil market dynamics on Nigeria’s downstream sector and underscores the challenges facing consumers and policy-makers alike.

Related posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.