Petrol and diesel prices jump by N113 and N150 per litre as depots react to Dangote Refinery's dollar sales policy
By Aboki Forex —
Private depot owners have raised petrol and diesel loading prices across Lagos, Port Harcourt and Warri depots after Dangote Refinery switched to dollar-denominated sales. Petrol prices climbed by as much as N113 per litre at Matrix Depot in Port Harcourt, which also recorded the biggest diesel increase of N150 per litre.
Data from the Petroleumprice.ng depot price report shows the adjustments were recorded within 24 hours of the refinery's policy announcement. Industry players expect the higher depot prices to put pressure on retail pump prices if the trend continues.
Dangote Refinery shifts to dollar sales
Dangote Refinery announced it would conduct all gantry and coastal product sales exclusively in U.S. dollars. The policy covers Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK).
Industry sources said the policy stems from the refinery's growing exposure to foreign exchange costs. A larger portion of its crude oil purchases began being settled in dollars while refined product sales had continued to be conducted in naira, Punch reports.
Depot price movements across Nigeria
In Lagos, four depots African Terminal, Ascon, Integrated and Sahara each moved their petrol loading price from N1,090 to N1,120 per litre. On diesel, African Terminal lifted its price from N1,430 to N1,500 per litre. Ibachem and Ibeto each raised theirs from N1,445 to N1,500 per litre. Wosbab adjusted its price from N1,450 to N1,510 per litre.
Port Harcourt recorded the sharpest movements. Matrix Depot raised its petrol loading price from N1,137 to N1,250 per litre, a jump of N113 per litre. It also recorded the largest diesel increase in the survey, moving its AGO price from N1,500 to N1,650 per litre, a rise of N150 per litre.
In Warri, Matrix raised petrol from N1,120 to N1,230 per litre. Optima moved its price from N1,117 to N1,141 per litre. Rain Oil adjusted upward from N1,130 to N1,170 per litre. Diesel prices in the same city also shifted. NIPCO moved from N1,485 to N1,571 per litre. Rain Oil moved from N1,485 to N1,560 per litre. Prudent moved from N1,540 to N1,550 per litre.
What this means for Nigerians
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has cautioned that Nigerians could soon pay more for petrol if the Dangote Petroleum Refinery begins selling refined petroleum products in U.S. dollars instead of naira. The warning follows reports that the 650,000-barrel-per-day refinery is considering a return to dollar-denominated transactions amid rising foreign-exchange obligations and concerns about crude oil supply.