The price of Premium Motor Spirit (PMS), commonly known as petrol, has increased to between N1,050 and N1,150 per litre across different areas. This rise follows a price hike by Dangote Petroleum Refinery and other depot owners.
Fuel dealers have confirmed that prices will likely keep going up as crude oil prices continue to climb. Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, had earlier warned about potential price increases if crude oil costs kept rising. “The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo said.
On Friday, Dangote Refinery raised its petrol price from N899 to N955 per litre at its loading station. In an email to its customers, the refinery explained that those buying between 2 million and 4.99 million litres will now pay N955 per litre, while those purchasing 5 million litres or more will pay N950 per litre. This new pricing took effect from 5:30 PM on Friday.
The price hike has led to adjustments across the downstream petroleum sector, with private depots increasing their prices even for old stock. Depots in Lagos and Calabar now charge up to N1,000 per litre. Oil marketers predict that the retail price of petrol could soon hit N1,100 in Lagos and N1,150 in the Federal Capital Territory.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained that the rising price of crude oil is driving up domestic fuel costs. “ 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,” Ukadike said.
Retailers have also expressed concerns about the high prices, noting that additional charges from regulatory authorities will further increase the cost to consumers. Despite these challenges, some retailers, under agreements with suppliers, are still selling petrol at N935 per litre for now.
