The Dangote Petroleum Refinery has increased its gantry price of petrol from N699 to N799 per litre, surpassing the landing cost of imported Premium Motor Spirit (PMS) which stands at N728.88 per litre. This development has led to MRS filling stations raising their prices to N839 per litre. The refinery attributed the price hike to the end of the festive period, stating that it had temporarily reduced prices to support the market during the holiday season.
Data from the Major Energies Marketers Association of Nigeria shows that the landing cost of imported petrol has remained relatively stable, while the Dangote refinery’s decision to increase its gantry price has created a disparity between the two. The refinery’s ex-depot price is now higher than the landing cost of imported petrol, which may impact the competitiveness of importers in the market.
The Dangote refinery had previously reduced its petrol price by N129 in December to ensure that Nigerians could purchase petrol at prices not exceeding N740 during the Yuletide season. The move was also intended to discourage importation, according to the President of the Dangote Group, Aliko Dangote. However, with the festive period now over, the refinery has readjusted its prices to reflect market realities.
The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, has expressed concerns that the price reduction in December was a strategic move by Dangote to dominate the market. He appealed for a level playing field for all stakeholders in the sector, warning that Nigerians may soon experience the implications of relying on a single supplier.
The Dangote refinery has maintained that it is committed to delivering energy security, price stability, and long-term value for Nigerians. The company’s design flexibility allows it to process a wide range of crude and intermediate feedstocks, ensuring a stable and uninterrupted supply of PMS to the domestic market. As the situation unfolds, it remains to be seen how importers will respond to the new price dynamics and whether they will be able to compete with the Dangote refinery’s prices.
