The Dangote Petroleum Refinery has justified its recent increases in petrol prices, attributing the adjustments to earlier crude purchases and the lengthy logistics involved in shipping and processing crude oil.
Premium Motor Spirit (PMS) now sells between ₦1,310 and ₦1,400 per litre nationwide, with Lagos and Ogun recording prices around ₦1,310, while northern states and distant markets see costs rise to ₦1,350 or more.
The refinery raised its gantry price three times in eight days, moving from ₦1,165 per litre on August 21 to ₦1,265 by August 29, a total increase of ₦100 per litre, or about 8.6%.
A senior Dangote executive explained that international crude benchmarks cannot immediately dictate local petrol prices because of the time lag between purchase and delivery.
“Large volumes of crude bought at higher prices remain in storage. Selling petrol based on today’s cheaper crude would mean losses on inventory acquired at higher costs,” the official said.
Industry stakeholders, however, remain concerned. The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that volatility in crude markets, coupled with geopolitical tensions between the US and Iran, is making business planning difficult.
IPMAN’s spokesperson, Chinedu Ukadike, noted that while Dangote has sometimes reduced prices in line with global trends, the current hikes are straining marketers and consumers alike.
With petrol edging closer to ₦1,400 per litre in some regions, the debate continues over how domestic refiners should balance international crude movements with local pricing realities.
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