•Tinubu
The pump prices of Premium Motor Spirit, popularly called petrol, have risen to between N1,050 and N1,150/litre depending on the area of purchase, following the hike in the cost of the commodity by the Dangote Petroleum Refinery and various depot owners.
Dealers confirmed that PMS prices would continue to rise since the major component in fuel production, crude oil, has been on the upward swing lately, reports Saturday PUNCH.
The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, earlier alluded to this when he pointed out that petrol prices might soon rise if the cost of crude oil continued to increase.
“The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo stated in Lagos.
Yesterday, there was an upward adjustment in the price of petrol produced by the Dangote Petrochemical Refinery.
The $20bn plant raised its PMS from N899/litre to N955/litre at its loading gantry.
The refinery, in an email statement sent to its customers and obtained by one of our correspondents, said its refined products would now be priced at the new cost.
It noted that marketers buying between two million and 4.99 million litres would now buy at N955/litre, while five million litres and above would buy at N950/litre.
The amount marks an increase of N55.5 or 6.17 per cent from N899.50/litre announced as a holiday discount for Nigerians last December.
This adjustment applies to all stock balances yet to be lifted by the stated time, while pending stock as of the effective time will also be repriced at the updated rates.
The statement added that the new price regime took effect from 5:30pm yesterday.
The notice, titled, ‘Communication on PMS Price Review’, read, “Dear esteemed customer, Trust this email finds you well.
“Kindly be advised that effective from 5:30 pm today (Friday), an upward adjustment has been implemented on the gantry price of Premium Motor Spirit. Quantity Previous Price (NGN/Litre): 2 million-9.99 million – N899.50; 10 million litres & above – N895.
“Quantity New Price (NGN/ Litre): 2 million – 4.99 million – N955; 5 million litres & above – N950.
“Please note that all stock balances yet to be lifted as of the above-stated time are to be repriced at the new reviewed prices. We shall communicate with customers on their revised volumes based on the reviewed prices, in due course.”
The price increase sparked widespread effects on the downstream petroleum sector, particularly private depots and retail markets.
Findings showed that private depots, despite having old stocks, increased their loading costs to N970 in Lagos and N1,000 in Calabar.
A breakdown analysing petrol price movements at loading depots after the announcement of the new price showed that Sahara depot increased its loading price by N20 to N970/litre from N950/litre on Thursday.
Pinnacle Depot increased its price to N970 from N921, while Wosbab Depot made a similar change to N965 from the N940 it sold a litre of petrol on Thursday.
NIPCO increased its loading costs by N30 to N980 from N950 on Thursday.
Also, a private depot, Rainoil, increased its loading costs to N970 from N950. A private depot, Alkanes, in Calabar, asked retailers to pay N1,000/litre to receive products.
Zone 4 and Mainland depots increased their loading costs to N1,005/litre from N985, which sold products on Thursday.
Oil marketers operating under the auspices of the Independent Petroleum Marketers Association of Nigeria projected a steep increase in the retail cost of petrol, stressing it could hit N1,100/litre in Lagos and neighbouring states.
IPMAN also said petrol customers in the Federal Capital Territory might pay N1,150 for a litre.
The IPMAN National Publicity Secretary, Chinedu Ukadike, said the product would now trade for more than N1,000/litre, especially in hinterlands nationwide.
He stressed that the new change was due to the recent surge in the price of crude oil globally.
Ukadike said, “Yes, Dangote has increased its price to N955. This is only because of the increase in Brent crude. Once it increases, the domestic production cost will also increase.
“Nigerians will likely pay over N1,150 at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980.
“This change is immediate because crude oil prices, too, are immediate. The refinery told us it has taken effect today, which means prices have increased already. Deregulation in this sector means price will be controlled by forces of demand and supply.
“So, if the force of supply says Brent crude has increased, it means domestic costs will also change. It is no longer funny now. Even marketers are affected by this up-and-down dwindling of prices. It affects our business.”
The Petroleum Products Retail Outlet Owners Association of Nigeria said retailers could not buy a litre of petrol and sold at N1,000/litre, adding that the margin would be higher than N45.
The PETROAN National President, Billy Gillis-Harry, said the Dangote PMS was exclusive of charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and that would form part of what retailers would add to the margin.
Though Gillis-Harry said he could not confirm the exact price of petrol at filling stations, he noted that it would be higher than N1,000/litre.
According to him, PETROAN members would still sell at N935/litre due to the agreement they have with MRS Oil, pending when the agreement changes.
“I’ve already told you that it’s difficult to do any effective amateur projection on price modulation. One of the reasons is that the cost of the production, the selling price, and the landing price, all of that will be taken into consideration. And the PIA (Petroleum Industry Act) has given provisions for how the price will be computed.
“So, at all times, we’ve got to depend on the PIA’s prescription for pricing. You know, the other day you called me and you told me about an association that said the price could be N500/litre. You can see how false the projections are. So, that means they are not informed by any empirical value,” Gillis-Harry stated.
He spoke further that since he got information about the price change, his team had been making analysis.
“So, before I can speak on prices, I must get the feedback from them, from at least 10 states, and maybe four or five depots. So, for today, you can quote me to say, yes, there is going to be a price change, but that price can only come, maybe by the close of tomorrow (Saturday).
“Because right now, we still have an obligation with the MRS to be selling at N935, and some of us bought products there. So, if they change their prices because of the Dangote price, then the conversation will be different.
“After the price of buying, there must be the price of logistics. Once that is computed, we can then look at what is the most humane profit margin,” he submitted.
An oil and gas expert, Olatide Jeremiah, said depots were poised to increase the loading price of refined petroleum products because of the heavy influence of the refinery.
Jeremiah, who is the Chief Executive Officer of petroleumprice.ng, said, “Dangote refinery’s influence on fuel price has become unmatched; private depots, major marketers, and independent marketers will compete with this new price. Therefore, Nigerians should expect an increase in the pump prices of petrol.
“Brent crude oil as of today (Friday) is $81.84, highest in 2025, it is one major factor for the increase.”
