Marketers Raise Petrol Prices in Abuja After Dangote Refinery Gantry Hikes
By Aboki Forex —
Petrol prices at NNPC Retail, TotalEnergies and Bovas stations in Abuja have risen following three gantry price increases by the Dangote Refinery within seven days. The refinery moved its gantry price from N1,165 per litre to N1,185, then further to N1,200 per litre, leaving marketers with little room to absorb the changes.
Chinedu Ukadike, Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that marketers raised pump prices in response. Some stations are now charging as much as N25 more per litre than they did earlier in the week.
Pump Prices Shift Across Abuja Stations
In Abuja, NNPC Retail stations moved their pump price from N1,250 to N1,270 per litre. TotalEnergies stations adjusted to N1,275, up from N1,250, while Bovas stations raised their price from N1,253 to around N1,275 per litre.
Ukadike said the pace of gantry price changes was creating uncertainty for both consumers and marketers. The cost of replacing stock can shift considerably within a short window, he noted.
Marketers Under Pressure
Ukadike explained that selling below replacement cost would expose marketers to losses when restocking. He said: "Every time Dangote increases his price, our price will also rise."
He also pointed to wider factors beyond the refinery gate. International crude oil prices, foreign exchange movements, and geopolitical developments affecting global supply all feed into domestic petrol costs.
Imports and the Naira
On petrol imports, the IPMAN official challenged the rationale behind bringing in products priced above what the Dangote Refinery offers. He said: "When the products that are being imported are higher than the ones Dangote is giving us, what is the essence of importing it, putting pressure on our dollar?"
Ukadike argued that importing costlier petrol strains Nigeria's foreign exchange market without delivering cheaper fuel to consumers.
Free Transport Scheme and South-East Expansion
Ukadike said the Dangote Refinery's free transportation initiative for petroleum marketers could help bring down distribution costs over time, providing some relief to consumers if the scheme is sustained. He noted that some trucks under the programme had yet to complete deliveries due to poor road conditions. He described the expansion of the initiative to Imo and Anambra states as a welcome development for South-East markets.
Earlier, the Dangote Petroleum Refinery had introduced a free petrol delivery programme for fuel marketers across six Nigerian states, pricing the product at N1,075 per litre under the first phase. The refinery also opened the sale of petrol to all licensed marketers, ending its previous consortium marketing arrangement.
Higher fuel prices have knock-on effects across the economy, pushing up transport costs for agricultural produce, manufactured goods and other commodities. For consumers, every naira added at the pump means more pressure on household spending, while businesses face higher logistics costs.