Dangote Raises Petrol Price Three Times in Nine Days, Gantry Price Hits N1,265
By Aboki Forex —
Dangote Petroleum Refinery has raised its Premium Motor Spirit gantry price three times in nine days, with the latest increase pushing the benchmark to N1,265 per litre. The refinery increased the price by N65 on August 29, marking the third upward adjustment in less than two weeks.
Three Increases in Nine Days
The refinery first moved its PMS gantry price from N1,165 to N1,185 per litre on August 20. It then adjusted again to N1,200 on August 25 before the latest jump to N1,265 on August 29.
Together, the three increases added N100 per litre to Dangote's benchmark price within nine days. The repeated adjustments reflect rising costs in the downstream petroleum market.
Depot Prices Yet to Catch Up
Depot prices in Lagos have not yet absorbed the latest increase. As at the close of trading on August 28, terminals including Pinnacle, Bono, Integrated and African Terminal were selling at N1,201 per litre. Aiteo held at N1,200.
That leaves a gap of roughly N64 to N65 below the new Dangote benchmark. Depot operators will need to revise their prices as they buy fresh supplies at the higher refinery rate.
Marketers and independent petroleum product depots are expected to adjust their prices in the coming trading sessions to reflect the new cost of replacement stock.
N1,300 Emerging as Next Benchmark
The N1,300 per litre level is now the likely next benchmark for the downstream market. However, how quickly prices get there will depend on existing inventories, transport costs and each depot's profit margin.
Global crude prices are adding further pressure. Brent crude climbed back above $90 per barrel on Monday, gaining more than 2% after US-Iran military strikes raised concerns about global oil supplies and the security of shipping through the Strait of Hormuz.
Higher crude prices increase the cost of importing or producing petroleum products, which could push replacement costs even higher for Nigerian marketers. The combination of Dangote's price hikes and firmer global crude benchmarks gives depot operators more reason to review their charges.
Consumers Brace for Higher Pump Prices
The immediate question is how quickly the N1,265 per litre gantry price will work through the supply chain into retail pump prices. The Nigerian National Petroleum Company Limited and other filling stations in Abuja have already increased pump prices of petrol.
Checks on Sunday, August 30 showed several filling stations in Abuja adjusting their prices. Motorists are now paying more at the pumps, and the ripple effect of Dangote's latest increase will likely spread further in the coming days.