Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), commonly known as petrol, in naira after a week-long suspension, but not without introducing a significant price increase that could impact motorists across Nigeria. The refinery raised its ex-depot price from N1,075 to N1,215 per litre, representing a 13 percent increase. Industry observers say the adjustment is likely to result in another round of fuel price hikes at filling stations nationwide as marketers pass on the added costs to consumers.
The latest development comes just days after Dangote Refinery temporarily halted truck loading operations and switched to dollar-denominated sales, a move that disrupted fuel supply chains and forced independent marketers to source products from private depots at much higher prices. During the period, ex-depot prices surged above N1,300 per litre, creating uncertainty in the downstream petroleum sector and increasing pressure on fuel retailers.
A notice issued by the refinery confirmed that gantry loading operations have resumed under a revised naira pricing structure. According to the notice, all outstanding truck-loading volumes would be repriced at the new rate of N1,215 per litre with immediate effect. The refinery had also increased its coastal loading price earlier, raising it from $1,044.62 per metric tonne to $1,161.23 per metric tonne, reflecting an 11.2 percent increase.
Reacting to the announcement, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Shettima Maigandi, described the return to naira sales as a positive step for the market. While acknowledging the increase, he noted that marketers had recently been paying as much as N1,300 per litre at private depots following the suspension of Dangote’s sales. He attributed part of the pricing pressure to global market conditions, including ongoing tensions in the Middle East, and said the new rate offered some relief compared to what marketers had been facing.
However, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed concern over the growing influence of a single supplier in the deregulated market. PETROAN President Billy Gillis-Harry argued that stronger regulatory oversight and increased competition are needed to prevent excessive price volatility. He called for greater output from government-owned refineries in Port Harcourt, Warri and Kaduna to create a more balanced market. As marketers begin to calculate transportation and operational costs under the new pricing regime, many Nigerians are now bracing for a possible increase in pump prices in the coming days.
source: The Guardian
