Dangote Petroleum Refinery has increased the gantry price of petrol and diesel from last month’s N1,200 to N1,275 per litre, and N1,750 to N1,950 per litre, respectively.
According to a top official of the refinery, who spoke with The PUNCH on Tuesday night, the adjustment is in response to prevailing international crude oil benchmarks and market realities.
‘The adjustment is in line with global market trends. You are aware of the ongoing tensions in the Middle East and how they have impacted crude oil prices. These are external factors that directly influence refined product pricing’, the official explained.
Market data from Petroleumprice.ng corroborated the development, indicating that the latest petrol price reflects a 5.02% increase at the gantry level.
The development comes at a time when stakeholders had hoped that increased local refining capacity would help stabilise domestic fuel prices. However, analysts say Nigeria remains exposed to global oil price volatility due to its reliance on international crude benchmarks for pricing.
The latest hike could trigger a fresh wave of increases in pump prices nationwide, with marketers expected to pass on the additional cost to consumers in the coming days.
Global oil markets have remained volatile in recent weeks due to escalating tensions in the Middle East, a region that accounts for a significant share of the world’s crude oil supply. Any disruption or perceived risk to supply routes often leads to price spikes, which in turn affect refined petroleum products globally.
Nigeria, despite being an oil-producing country, operates a deregulated downstream sector where fuel prices are largely determined by market forces. This means that local prices are influenced by international crude prices, exchange rates, logistics costs, and refinery operations.
The Dangote Petroleum Refinery, Africa’s largest, was expected to reduce Nigeria’s dependence on imported fuel and help stabilise prices. However, experts note that as long as crude oil pricing remains tied to global benchmarks, domestic fuel prices will continue to fluctuate in response to international developments.
The latest increase also comes amid affordability concerns, with consumers already grappling with high energy and transportation costs. A sustained price increase could worsen inflationary pressures and slow economic recovery.
