The price of fuel is rising at Nigerian pump stations following a fresh increase in the gantry price by foremost supplier, Dangote Petroleum Refinery.
The Dangote Petroleum Refinery announced it has increased its Premium Motor Spirit gantry price by N101, raising the ex-depot rate from N774 to N875 per litre.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed the development.
“Following the increase by Dangote, the pump price will likely range between N980 and over N1,000 per litre, depending on location and logistics. This is largely the effect of the recent hike in global crude oil prices,” Ukadike said.
A senior official at the refinery first confirmed the price adjustment, noting that it was driven by volatility in the international crude oil market.
“Yes, the price has been reviewed. The new gantry price is now N874 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official said.
Checks by petroleumprice.ng also showed that the revised rate had been reflected across the downstream value chain, indicating a shift in pricing benchmarks.
In a notice to marketers, the refinery stated:
“Dear Valued Customer, we are pleased to inform you that PMS is currently available for purchase. Please be informed that the current price is N874 per litre. Thank you for choosing Dangote.”
Several depot owners also suspended petrol sales to reassess replacement costs.
“Several depot owners halted PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator said.
The development comes amid heightened global oil market volatility linked to escalating tensions between the United States and Iran, raising fears of possible supply disruptions around the strategic Strait of Hormuz.
JPMorgan Chase has projected that Brent crude could climb to $120 per barrel if a prolonged Middle East conflict continues to disrupt oil flows through the strait.
