Dangote Refinery Price Hike Pushes Petrol to N1,430 in Abuja, N1,380 in Lagos

Petrol pump prices have climbed across Lagos, Abuja and Ogun State after Dangote Petroleum Refinery raised its wholesale gantry price from N1,265 to N1,350 per litre. The N85 increase, a 6.7% rise, has taken the refinery's wholesale price above Nigeria's current petrol landing cost of about N1,311 per litre.

The latest increase follows an earlier N185 increase by Dangote in three weeks, as depots adjusted rates.

Lagos and Ogun prices

In Lagos, the Nigerian National Petroleum Company Limited (NNPCL) has set its pump price at N1,380 per litre from N1,299. Checks along Iyana-Iba Road showed FVB and Toluwalase filling stations selling at N1,350 per litre, reflecting differences in when each outlet last purchased its stock.

In Abeokuta, Ogun State, the NNPCL outlet was selling petrol at N1,307 per litre, while Fatgbems outlets charged N1,385 per litre. Marketers who bought supplies before the latest adjustment are likely to sell existing stock at lower prices before revising their rates upon restocking.

Abuja sees steepest jump

Abuja recorded the steepest increases. NIPCO raised its pump price from N1,350 to N1,430 per litre. Mobil increased from N1,350 to N1,400 per litre, and MRS moved from N1,350 to N1,395 per litre.

An attendant at an MRS outlet in Abuja, who asked not to be named, said the station was still selling stock purchased before the latest wholesale adjustment. The attendant noted that prices could rise further once fresh supplies are brought in.

Crude oil, inflation warnings

The increases coincide with elevated international crude oil prices. Brent crude was trading at around $107.92 per barrel before moving to $108.21, adding further pressure on the cost of petroleum products and replacement supplies.

Economist and development expert Aliyu Ilias cautioned that repeated petrol price increases could intensify inflation by pushing up transportation and production costs, which would eventually filter through to the prices of food and other daily essentials. Former Secretary-General of the Organisation of African Trade Union Unity, Owei Lakemfa, urged the government to shield Nigerians from sharp swings in global oil prices.

National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said filling stations had updated their pump prices in response to successive wholesale adjustments. He said frequent wholesale price changes create uncertainty for operators because replacement stock can become more expensive before current supplies are fully sold.

Aviation fuel dispute

In a related development, Nigeria's aviation sector is on edge as a dispute over aviation fuel price threatens domestic flight operations. The Major Energies Marketers Association of Nigeria (MEMAN) pushed back against claims by the Airline Operators of Nigeria (AON) that Jet A1 fuel now costs as high as N3,300 per litre, a figure airlines say is forcing them toward a potential shutdown. MEMAN expressed surprise at the N3,300 per litre figure, describing it as significantly above prevailing market rates.

For Nigerian businesses and households, the higher pump prices mean more pressure on transport, food and production costs.