Nigerian motorists are facing fresh petrol-price uncertainty after the Dangote Petroleum Refinery raised its gantry price by ₦65 per litre, bringing the cost of petrol to ₦1,265 — the refinery’s third increase in just eight days.
The latest adjustment has intensified fears of another round of pump-price increases as marketers grapple with rising supply costs.
Dangote had raised its petrol price from ₦1,165 to ₦1,185 per litre on August 21 before increasing it to ₦1,200 on August 26. Three days later, the refinery announced another ₦65 increase, taking the total rise within the period to ₦100 per litre.
The latest adjustment represents a 5.4 per cent increase and is expected to put additional pressure on retail petrol prices across the country.
The refinery also increased its coastal petrol price from ₦1,582,380 to ₦1,669,545 per metric tonne, while customers were directed to return existing Authorisations to Collect for repricing before loading could resume.
Marketers Brace for Higher Costs
The new price is likely to reverberate through the downstream petroleum market, with marketers expected to review their depot and retail prices.
Independent petroleum marketers have already reported petrol selling for between ₦1,250 and ₦1,300 per litre in some locations.
Industry operators have attributed the latest price movements to a combination of international crude-price volatility, higher freight charges, foreign-exchange pressures and challenges surrounding crude supply.
The consequences could extend far beyond filling stations.
Any significant rise in petrol prices is likely to increase transportation and logistics costs, with potential knock-on effects on food distribution, business operations and the prices of everyday goods and services.
For households already battling elevated living costs, another increase could deepen the pressure on disposable incomes.
Dangote Raises Alarm Over Petrol Imports
The latest price increase comes amid a growing dispute over the volume of imported petrol entering Nigeria.
The Dangote refinery says imported Premium Motor Spirit accounted for approximately 43 per cent of petrol supplied to the Nigerian market in July.
The company argues that the continued inflow of imported fuel is making inventory management increasingly difficult for domestic refiners.
Dangote said it has maintained substantial petrol reserves since beginning operations to ensure reliable supply across Nigeria. But keeping large quantities of fuel in storage requires significant spending on storage facilities, transportation and working capital.
According to the refinery, uncertainty over the quantity and timing of imported petrol makes it difficult to accurately forecast domestic demand and determine how much fuel should be produced and stored.
When imported products subsequently compete with locally refined petrol, the refinery can be left carrying expensive inventories for longer periods.
Refinery May Export More Petrol
Dangote has warned that it could increase petrol exports if the current situation persists.
The refinery said exporting surplus stocks could become more commercially viable than keeping large volumes of unsold petrol in storage.
It stressed that increased exports should not be interpreted as a sign that Nigeria lacks sufficient refining capacity.
Rather, the company said the exports are being driven by excess inventories arising from unpredictable import volumes.
Dangote maintains that it has the capacity to meet or exceed Nigeria’s petrol requirements and remains committed to supplying the domestic market.
However, the refinery says a more predictable and transparent market is necessary for efficient production planning and inventory management.
Pressure Mounts on Regulators
The company is calling for greater transparency in the issuance of petrol import licences and better coordination among regulators and industry players.
It argues that policies supporting domestic refining would help Nigeria reduce its dependence on imported fuel, conserve foreign exchange and strengthen the country’s energy security.
The latest developments expose the difficult balancing act in Nigeria’s downstream petroleum market.
Despite the emergence of major domestic refining capacity, petrol prices remain vulnerable to global crude prices, exchange-rate movements, freight costs, crude availability and competition from imports.
With Dangote’s gantry price now at ₦1,265 per litre, all eyes are on petrol marketers and filling stations for the next move.
For Nigerian consumers, the fear is that another refinery price increase could soon translate into another painful increase at the pump.
Dangote Hikes Petrol Price Again to ₦1,265, Stoking Fresh Pump-Price Fears
