Dangote Refinery has raised its Premium Motor Spirit (PMS) gantry price for the second time in four days, setting a new rate of N995 per liter, up from N874 at the weekend. This increase of N121 per liter follows an earlier N100 hike and has directly pushed retail fuel prices across Nigeria above the N1,000 per liter mark.
The refinery, a 650,000-barrel-per-day facility, attributed the cumulative price adjustments to volatility in global crude oil markets, specifically citing the war in the Middle East. According to data from oilprice.com, crude oil prices surged by 9 percent to between $90.90 and $93 per barrel by Sunday morning, following escalation in the Iran-United States-Israel conflict in the Gulf region.
The gantry price rise triggered comparable increases at retail pumps. Filling stations in Abuja, including those operated by MRS and the Nigerian National Petroleum Company Limited (NNPCL), lifted their petrol pump prices to between N967 and N1,010 per liter as of Saturday. This aligns with the latest industrial pricing data from the Major Energies Marketers Association (MEM), which indicates that imported fuel is now approximately N185.17 per liter cheaper than Dangote’s current gantry rate.
In a statement issued on Thursday, Dangote Refinery acknowledged that fuel price stability was unlikely in the current climate but assured the nation of consistent supply. The refinery’s pricing decisions are closely watched due to its status as Africa’s largest refining complex, which began operations in late 2023 with the aim of reducing Nigeria’s dependence on imported petroleum products.
The persistent upward trajectory in crude oil costs, driven by geopolitical uncertainty, presents a significant challenge for domestic fuel pricing. With Dangote Refinery serving as a major supplier, its gantry rates effectively set the benchmark for the national market. Consequently, Nigerian consumers and businesses face sustained pressure from rising transportation and operational costs, while the government’s fiscal planning contends with increased volatility. The situation underscores the direct transmission of global oil market shocks into the local economy, with no immediate relief in sight as international tensions persist.
