…Refinery Raises Ex-Depot Price by N140 to N1,215 as Global Prices Rise
By Emmanuel Olugua
Dangote Petroleum Refinery has resumed the loading of Premium Motor Spirit (PMS), popularly known as petrol, in naira after a week-long suspension, ending days of uncertainty in Nigeria’s downstream petroleum sector and restoring supplies to marketers.
The resumption comes with a higher ex-depot price of N1,215 per litre, representing an increase of N140 per litre, or 13.02 per cent, from the previous price of N1,075 per litre.
The refinery’s decision is expected to improve product availability across the country after the temporary suspension forced many independent marketers to rely on private depots, resulting in tighter supplies and sharp price increases.
Industry sources confirmed that marketers had been notified of the resumption of gantry loading under the revised naira pricing structure, with truck loading commencing immediately.
The latest adjustment follows a sharp rise in global crude oil prices, which has significantly increased the cost of refining petroleum products.
Market data showed that Brent crude, the international oil benchmark, climbed 3.18 per cent to $93.90 per barrel, while West Texas Intermediate (WTI) rose 2.74 per cent to $86.65 per barrel, pushing up production costs for petrol, diesel, and aviation fuel.
The refinery had earlier attributed the suspension of naira-denominated sales to difficulties in accessing sufficient crude oil under the Federal Government’s naira-for-crude arrangement, leading it to temporarily switch to dollar-based transactions.
Barely 24 hours before restoring naira truck loading, the 650,000-barrels-per-day refinery had resumed coastal loading of petrol at a higher price.
Industry data showed that the refinery increased its coastal loading price to $1,161.23 per metric tonne, up from $1,044.62 per metric tonne, representing an 11.2 per cent increase.
The temporary suspension of naira sales had disrupted inland fuel distribution, with many marketers turning to private depots where ex-depot prices surged well above Dangote’s previous rate.
The restoration of naira transactions is expected to ease supply constraints and improve nationwide distribution, although consumers are still likely to face higher prices at the pumps.
Across the country, depot owners have already adjusted prices upward in response to higher replacement costs.
Market data for July 22 showed petrol prices rising across major supply hubs, including Lagos, Port Harcourt, Warri, and Calabar.
The sharpest increase was recorded at Bulk Strategic Reserve in Lagos, where the ex-depot price rose by N87 per litre to N1,350, from N1,263.
Other major depots, including Liquid Bulk, Masters Energy, Matrix, and Sigmund, also raised their prices by between N15 and N17 per litre, selling at about N1,280 per litre.
The higher depot prices have already filtered through to retail outlets.
A survey of filling stations across Lagos and neighbouring communities showed pump prices increasing from an average of N1,260 per litre to about N1,350 per litre, with some stations dispensing petrol at between N1,300 and N1,400 per litre.
The latest increases have renewed concerns over the cost of living, as higher fuel prices are expected to trigger fresh increases in transportation fares, food prices, and operating costs for businesses across the country.
Discover more from Keeping Them Honest
Subscribe to get the latest posts sent to your email.