Nigeria Braces for Further Inflation as Petrol Prices Hit N1,175 at Dangote Refinery

The cost of goods and services across Nigeria is expected to rise further following a fresh increase in petrol prices after the Dangote Petroleum Refinery raised the gantry price of Premium Motor Spirit to N1,175 per litre, marking the third upward adjustment within a week.

The latest price revision comes hours after Newspilot projected that petrol prices could rise for the third time within a week following the temporary suspension of petrol sales at the refinery on Sunday. The refinery announced the price hike to marketers on Monday, raising the gantry price of Premium Motor Spirit to N1,175 per litre from N995 per litre announced on Friday, representing an increase of N180 or about 18.1 per cent within three days. It also revised the gantry price of Automotive Gas Oil, commonly known as diesel, to N1,620 per litre.

A senior official of the refinery, who spoke on condition of anonymity because he was not authorised to comment publicly, confirmed the adjustment to a Newspilot correspondent, stating that the revision had already been communicated to marketers and depot operators. The official noted that the market has been extremely volatile and replacement costs have shifted significantly in recent days, adding that these adjustments reflect prevailing market fundamentals and the current cost environment.

Checks on the industry pricing platform, petroleumprice.ng, showed that the revised rates had already been updated across petroleum depot pricing systems, indicating a shift in the benchmark price used by downstream marketers. The new price is the third surge in petrol prices within a week, following adjustments that pushed gantry prices from N774 to N995 per litre. As a result, retail pump prices in several states now exceed N1,000 per litre, as some stations now dispense petrol at about N1,200 per litre, intensifying economic pressures on Nigerians.

The latest hike is expected to trigger another round of increases at filling stations nationwide, as higher fuel costs typically translate into higher transportation, logistics, and production costs for businesses. It also betrays efforts by the Federal Government, through the Nigerian National Petroleum Company Limited, to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders in a bid to sustain domestic refining operations.

Officials, however, warned that the intervention may not immediately translate into lower petrol prices for consumers. Nigerians currently grapple with high fuel prices following the recent hikes in the cost of the commodities by the $20bn Lekki-based refinery.