The ex-depot price of petrol has risen by ₦100 per litre at the Dangote Petroleum Refinery, a move that has triggered immediate adjustments in retail prices across Nigeria. This development follows a surge in global crude oil prices past the $80 per barrel mark, directly impacting the nation’s downstream sector.
According to industry reports, the refinery increased its ex-depot price from ₦774 to ₦874 per litre. Consequently, several marketers have begun selling Premium Motor Spirit (PMS) at rates as high as ₦900 per litre, with some depots quoting ₦895 per litre. The resumption of petrol loading and the issuance of new Proforma Invoices at the revised rate signal a swift market response to the higher replacement cost.
The price adjustment has raised concerns about broader economic implications. Paul Alaje, Chief Economist at SPM Professionals, warned that if escalating geopolitical tensions involving the United States, Israel, and Iran are not contained, the local pump price of petrol could reach ₦1,000 per litre by the end of April. He noted that rising crude costs inevitably translate to higher prices for refined products like diesel and aviation fuel, which would fuel inflation and affect all economic strata.
A Dangote Group spokesperson confirmed the refinery’s operational price change but had no official statement on the specific hike at the time of report. The 650,000-barrel-per-day facility, which recently commenced operations, holds a pivotal role in Nigeria’s quest for fuel self-sufficiency, making its pricing decisions a key barometer for the market.
In a separate development, Dangote Group President Aliko Dangote outlined plans to expand beyond oil refining into steel production, electricity generation, and port logistics. The conglomerate aims to deepen Africa’s manufacturing base, positioning the continent as an industrial hub. This strategic vision contrasts with the immediate pressure of volatile global oil prices on domestic fuel costs.
The current scenario underscores Nigeria’s continued vulnerability to international oil price fluctuations despite the operational launch of its major refinery. With global tensions showing no signs of abating, further petrol price revisions are anticipated, placing additional strain on consumers and businesses. The central bank’s inflation fight and government’s energy policy now face a critical test amid this new price reality.
