Petrol prices are edging closer to N1,300 per litre in parts of Nigeria, with petroleum marketers warning that continued price fluctuations are making it increasingly difficult to plan their businesses. The development followed another increase in the ex-depot price of Premium Motor Spirit (PMS) by the Dangote Petroleum Refinery, pushing the cost of petrol to between N1,250 and N1,300 per litre in some locations.
The Dangote refinery raised its PMS gantry price by N15 per litre, from N1,185 to N1,200, effective August 26, 2026. The latest adjustment came just five days after the refinery increased the price from N1,165 to N1,185 per litre, bringing the total increase to N35 per litre in less than a week. Marketers say the rapid changes are putting pressure on their operations as they struggle to determine what their costs will be from one period to another.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers were being affected by several factors, including international oil prices, government policies and movements in the foreign exchange market. He noted that while Dangote Refinery had previously reduced prices in response to movements in the international market, the latest increase was coming at a time when crude oil prices had been falling. According to him, the situation has made it difficult for independent marketers to structure their businesses effectively.
The volatility in the global oil market is adding another layer of uncertainty. Oil prices reportedly fell by about four per cent on Tuesday, with Brent crude dropping to $88.43 per barrel and West Texas Intermediate settling at $81.67 per barrel, as investors assessed new United States sanctions against Iran and their possible impact on global supply. Ukadike warned that continued tensions between Iran and the United States could contribute to further irregularities in petrol prices, while marketers remain exposed to changes in crude prices and other financial pressures.
For motorists and households already dealing with rising living costs, the latest development could translate into higher expenses if the increase continues to filter through to filling stations. Ukadike said independent marketers and consumers were ultimately bearing the impact of price fluctuations, as costs related to transportation, depot charges and other operations are added to the price of petrol. With the Dangote refinery playing a major role in Nigeria’s refined petroleum supply, marketers and consumers are now watching closely to see whether petrol prices will stabilise or move further towards the N1,300 per litre mark.
source: punch
