The Dangote Petroleum Refinery, Africa’s largest petroleum refinery based in Lagos, Nigeria, has increased the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (diesel), citing rising crude oil landing costs.
The refinery raised the petrol price to N1,175 per litre, marking the third price hike within one week, while the gantry price of diesel was increased to N1,620 per litre, further heightening concerns among businesses already struggling with rising operating costs.
The latest increase represents the third surge in petrol prices within a week, following earlier adjustments that pushed the refinery’s gantry price from N774 to N874, and subsequently to N995 per litre, before the latest hike to N1,175 per litre.
As a result, retail pump prices in several parts of Nigeria have already crossed the N1,000 per litre mark, with some filling stations selling petrol at around N1,200 per litre, intensifying the cost-of-living pressures facing citizens.
Industry operators warn that the latest development will likely trigger another round of price increases at filling stations nationwide, as higher fuel costs typically translate into increased transportation fares, logistics expenses, and production costs, ultimately pushing up the prices of goods and services.
The development also comes amid efforts by the Federal Government, through the Nigerian National Petroleum Company Limited, to secure crude oil supply for the refinery via third-party international traders in order to sustain domestic refining operations.
However, officials familiar with the arrangement have cautioned that the intervention may not immediately lead to lower petrol prices for consumers, as global crude oil prices, foreign exchange volatility, and operational costs continue to influence domestic fuel pricing.
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