The pump costs of Premium Motor Spirit (PMS), often known as petrol, have elevated to between N1,050 and N1,150 per litre, relying on the situation of buy, following value hikes applied by the Dangote Petroleum Refinery and varied depot house owners.
Dangote Refinery, on Friday, raised its ex-depot value from N899 to N955 per litre, marking a 6.17 per cent improve from earlier charges.
The rise is attributed to rising world crude oil costs, which just lately reached $80 per barrel. Business consultants predict that with out enhancements within the change charge, additional value hikes are possible within the coming weeks.
The Unbiased Petroleum Entrepreneurs Affiliation of Nigeria (IPMAN) indicated that customers in distant areas would possibly face costs exceeding N1,150 resulting from added logistics prices.
The Dangote Refinery’s determination displays ongoing market dynamics influenced by crude oil prices and the deregulated nature of Nigeria’s gas sector. As costs rise, shoppers and companies alike are bracing for the impression on transportation and items
Gasoline sellers have confirmed that gas costs are prone to maintain rising, as crude oil, a key ingredient in gas manufacturing, has seen a latest upward pattern.
Recall that the nationwide president of the Petroleum and Pure Gasoline Senior Employees Affiliation of Nigeria, Festus Osifo, had warned that petrol costs may proceed to extend if the price of crude oil remained excessive.
“The crude value rose to $80 per barrel on Thursday. With out change charge enhancements, PMS costs will improve within the coming weeks,” Osifo acknowledged in Lagos.
On Friday, January 17, the Dangote Petrochemical Refinery applied a rise within the value of petrol, elevating the price of its PMS from N899 per litre to N955 per litre at its loading gantry.
In an electronic mail assertion despatched to its clients, the refinery introduced that its refined merchandise would now be bought on the new value.
Entrepreneurs buying between two million and 4.99 million litres would pay N955 per litre, whereas these shopping for 5 million litres or extra could be charged N950 per litre.
This value adjustment marks a N55.50 improve, or 6.17 p.c, from the earlier charge of N899.50 per litre, which had been provided as a vacation low cost in December.
The brand new charges apply to all inventory balances but to be lifted, in addition to any pending inventory as of the efficient time, which may even be repriced.
The brand new pricing construction took impact on the night of Friday, January 17.
The discover, titled “Communication on PMS Worth Assessment,” started with the greeting: “Pricey esteemed buyer, Belief this electronic mail finds you properly.”
“Kindly be suggested that efficient from 5:30 pm right now (Friday), an upward adjustment has been applied on the gantry value of Premium Motor Spirit. Amount Earlier Worth (NGN/Litre): 2 million-9.99 million – N899.50; 10 million litres & above – N895,” the e-mail learn.
“Amount New Worth (NGN/ Litre): 2 million – 4.99 million – N955; 5 million litres & above – N950.
“Please observe that every one inventory balances but to be lifted as of the above-stated time are to be repriced on the new reviewed costs. We will talk with clients on their revised volumes primarily based on the reviewed costs, in the end.”
The latest value hike has had vital repercussions throughout the downstream petroleum sector, particularly in personal depots and retail markets.
Oil entrepreneurs, represented by the Unbiased Petroleum Entrepreneurs Affiliation of Nigeria (IPMAN), have projected a pointy rise in retail petrol costs, estimating that costs may attain N1,100 per litre in Lagos and surrounding states.
IPMAN additionally indicated that clients within the Federal Capital Territory would possibly face a value of N1,150 per litre.
IPMAN’s nationwide publicity secretary, Chinedu Ukadike, confirmed that petrol would now be bought for greater than N1,000 per litre, notably in distant areas throughout the nation.
He attributed the value surge to the latest world rise in crude oil costs.
“Sure, Dangote has elevated its value to N955. That is solely due to the rise in Brent crude. As soon as it will increase, the home manufacturing value may even improve,” Ukadike stated.
“Nigerians will possible pay over N1,150 at faraway places, whereas places near the depot can pay N1,100. It’s because we are going to add about N50 logistics prices. At present, ex-depot costs have elevated to N980.
“This modification is fast as a result of crude oil costs, too, are fast. The refinery advised us it has taken impact right now, which implies costs have elevated already. Deregulation on this sector means value might be managed by forces of demand and provide.
“So, if the provision drive of provide says Brent crude has elevated, it means home prices may even change. It’s not humorous now. Even entrepreneurs are affected by this up-and-down dwindling of costs. It impacts our enterprise.”
The Petroleum Merchandise Retail Outlet Homeowners Affiliation of Nigeria (PETROAN) has acknowledged that retailers could be unable to purchase petrol at present costs and promote it for N1,000 per litre, noting that the margin would exceed N45.
PETROAN’s nationwide president, Billy Gillis-Harry, defined that the value of Dangote petrol is unique of further prices from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which might be added to the margin by retailers.
Though Gillis-Harry was unable to substantiate the precise value of petrol at filling stations, he acknowledged that it might exceed N1,000 per litre.
He additional clarified that PETROAN members would proceed promoting at N935 per litre, as per their settlement with MRS Oil, till any adjustments are made to the phrases.
“I’ve already advised you that it’s tough to do any efficient novice projection on value modulation. One of many causes is that the price of the manufacturing, the promoting value, and the touchdown value, all of that might be considered. And the PIA (Petroleum Business Act) has given provisions for a way the value might be computed,” he stated.
“So, always, we’ve bought to rely on the PIA’s prescription for pricing. You understand, the opposite day you known as me and also you advised me about an affiliation that stated the value might be N500/litre. You possibly can see how false the projections are. So, meaning they aren’t knowledgeable by any empirical worth,” Gillis-Harry acknowledged.
He added that since receiving details about the value change, his staff had been conducting thorough analyses.
“As a result of proper now, we nonetheless have an obligation with the MRS to be promoting at N935, and a few of us purchased merchandise there. So, if they alter their costs due to the Dangote value, then the dialog might be totally different.
“After the value of shopping for, there have to be the value of logistics. As soon as that’s computed, we are able to then have a look at what’s the most humane revenue margin,” he submitted.
An oil and fuel skilled and CEO of petroleumprice.ng, Olatide Jeremiah, acknowledged that depots had been prone to increase the loading costs of refined petroleum merchandise because of the vital affect of the refinery.
“Dangote refinery’s affect on gas value has develop into unmatched; personal depots, main entrepreneurs, and impartial entrepreneurs will compete with this new value. Subsequently, Nigerians ought to anticipate a rise within the pump costs of petrol,” he defined.
Brent crude oil closed on Friday at $81.84, highest in 2025, and it’s one main issue for the rise.”
