Fresh increase in petrol pump price

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Nigerian motorists and other petrol consumers are facing renewed uncertainty over the direction of pump prices as crude oil costs, logistics expenses and growing competition between locally refined and imported petrol continue to shape the downstream petroleum market.

The latest concern follows another increase in the ex-depot price of Premium Motor Spirit (PMS) by the Dangote Petroleum Refinery, which has raised its petrol gantry price to ₦1,265 per litre.

The latest adjustment is the refinery’s third price increase in about eight to nine days, coming after earlier prices of between ₦1,165 and ₦1,200 per litre.

The repeated adjustments have triggered fresh increases in pump prices across different parts of the country. Petrol is reportedly selling at prices approaching ₦1,400 per litre in some locations, while prices around ₦1,310 per litre have been reported in Lagos and Ogun states.

NNPC retail stations have also adjusted their prices, with petrol reportedly selling for about ₦1,299 per litre in Abuja.

The latest developments have intensified concerns among motorists, transport operators, businesses and households over whether petrol prices could rise further in the coming days.

Dangote Refinery has attributed the recent increases to factors including the cost of crude oil purchased earlier and logistics expenses involved in moving petroleum products to different markets.

However, the refinery has also raised concerns over the growing volume of imported petrol entering the Nigerian market. Available industry data indicate that imported products accounted for about 43 per cent of petrol supply in recent data.

The development has created a fresh competitive challenge for domestic refining, particularly as local refiners seek to establish themselves as major suppliers to the Nigerian market.

Dangote Refinery is reportedly considering restricting sales to marketers that also import petrol, a move that could further reshape competition within the downstream sector.

The possibility has generated debate among industry stakeholders, with the Centre for the Promotion of Private Enterprise (CPPE) calling for a review of policies affecting domestic refining and petroleum imports.

Stakeholders argue that while competition remains important for the market, government policies must also encourage investments in local refining and ensure that consumers are not exposed to excessive price volatility.

For motorists, however, the immediate concern remains the uncertainty surrounding pump prices.

With crude oil prices, transportation and logistics costs, refinery pricing decisions and imported petrol all influencing the market, consumers may have to brace for further adjustments as marketers respond to changing supply and cost conditions.

The coming days are therefore expected to provide a clearer indication of whether the latest price increases represent a temporary market adjustment or the beginning of another sustained rise in petrol prices.