44
Nigerians could quickly pay extra for petrol because the Dangote Petroleum Refinery on Friday elevated its ex-depot value for Premium Motor Spirit to N880 per litre, elevating recent considerations over gasoline affordability and value volatility within the downstream sector.
Checks on petroleumprice.ng, a platform monitoring every day product costs, and a Professional Forma Bill seen by The PUNCH confirmed the hike, representing a N55 improve from the earlier fee of N825 per litre.
The increment would ripple throughout your entire gasoline distribution chain, seemingly pushing pump costs above N900/litre in some elements of the nation, particularly in areas removed from the distribution hubs.
The hike comes regardless of international crude costs falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks presents little reduction as a result of persistent fears of sudden provide disruptions.
The refinery has elevated its reliance on imported U.S. crude and operational prices amid alternate fee instability, which provides to its pricing stress.
On Thursday, the President of the Dangote Group, Aliko Dangote, mentioned his 650,000-barrel capability refinery is “more and more” counting on the USA for crude oil.
This got here as findings confirmed that the Dangote Petroleum Refinery is projected to import a complete of 17.65 million barrels of crude oil between April and July 2025, starting with about 3.65 million barrels already delivered prior to now two months, amid ongoing allocations below the Federal Authorities’s naira-for-crude coverage.
Dangote knowledgeable the Technical Committee of the One-Cease Store for the sale of crude and refined merchandise in naira initiative that the refinery was nonetheless battling crude shortages, which had led it to resort to imports from the USA.
On Monday, the president of the Petroleum and Pure Gasoline Senior Workers Affiliation of Nigeria, Festus Osifo, accused oil entrepreneurs of exploiting Nigerians by inflated petrol costs, insisting that the present pump value of PMS ought to vary between N700 and N750 per litre.
He criticised the disparity between falling international crude oil costs and the stagnant retail value of petrol in Nigeria.
“If you happen to log on and examine the PLAT value per cubic metre of PMS, convert that to litres after which to our Naira, you will notice that with crude at round $60 per barrel, petrol must be retailing between N700 and N750 per litre.”
He asserted that if Nigerians bear the brunt of upper gasoline prices, they need to be allowed to take pleasure in the advantage of low pricing.
His forecast of elevated prices now seems spot on, contemplating the most recent developments.
Entrepreneurs are already adjusting. Depot house owners and gasoline distributors in Lagos and different cities anticipate a domino impact, with new value bands anticipated to observe Dangote’s lead.
Many had held again pricing choices since Tuesday, when the refinery halted gross sales and withheld recent PFIs. The delay fueled hypothesis, permitting opportunistic value hikes throughout numerous depots.
Put up Views: 139
