The Dangote Petroleum Refinery has raised its ex-depot price of petrol to N850 per litre, marking a N30 increase from the previous price of N820 per litre. This adjustment in ex-depot price means that Nigerians and businesses will now face higher costs for petrol, as the ex-depot price is what marketers pay when purchasing petrol from the refinery before it is distributed to retail stations.
This price hike follows the resumption of petrol sales to its partners after a one-week hiatus, during which the refinery had suspended all payments for petrol loading at its gantry. According to the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Garima, the refinery has resumed operations and the new price of N850 per litre is now in effect.
Some of Dangote’s retail partners in Lagos have already increased their pump prices, with prices reaching N915 per litre at certain stations.
The price hike by Dangote Refinery comes shortly after the Nigerian National Petroleum Corporation (NNPC) Limited also reduced its petrol retail prices to N875 per litre in Lagos and N900 per litre in Abuja. This was seen as an effort by NNPC to stabilize fuel prices amidst various market dynamics.
Dangote Refinery’s price adjustment follows its decision in July 2023 to suspend the strategic partner discounted pricing scheme. The scheme previously offered price incentives to selected partners, but complaints arose that some partners were reselling their Authority to Collect (ATC) rights to marketers outside the scheme, allowing them to purchase fuel below the prevailing ex-gantry price. This led to the suspension of the discounted pricing scheme.
As fuel prices continue to fluctuate, Nigerians will likely face continued increases in fuel costs, which could impact transport, business operations, and overall economic stability.
