The Dangote Petroleum Refinery has increased its petrol gantry price by N100, raising the ex-depot rate from N774 to N874 per litre amid renewed volatility in global crude oil markets.
An official of the refinery confirmed the adjustment to PREMIUM TIMES on Tuesday morning.
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“It is true,” the official told PREMIUM TIMES, although the company is yet to release an official statement to that effect.
Filling stations in Abuja have already adjusted their prices in Abuja. On Tuesday morning, PREMIUM TIMES observed that both Conoil and NNPC filling stations along Airport Road in Lugbe were selling at N960/litre, up from N880 and N875 on Monday.
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The filling station’s vendors said the prices were adjusted on Tuesday morning.
The price adjustment comes amidst ongoing conflict between the US/Israel and Iran, which has disrupted the supply of crude oil and gas globally, particularly along the strategic Strait of Hormuz.
The Strait is the waterway through which about half of the world’s crude oil and condensates are exported. However, shipment and trucking of products have been halted due to the ongoing war across the Gulf countries.
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Iran announced that the strait is closed and warned that it would fire on any vessel attempting to pass through it.
Brent Crude jumped by almost 10 per cent at the commencement of trading on Monday, rising to $79.41 per barrel from $72.87 on Friday — a seven-month high — based on figures from FactSet.
Energy analysts have since warned that if crude prices continue their upward trajectory towards $90 per barrel, Nigeria could witness further increases in the domestic prices of both petrol and diesel.
The projected rise would be driven by higher shipping, insurance, and refining costs, despite the country’s expanding local refining capacity.
ALSO READ: NNPC’s CEO visits Dangote Refinery, seeks to forge strategic alliance
It was reported that officials of the Dangote Refinery attributed the decision to recent fluctuations in international crude prices and rising replacement costs. An official explained that the revision became necessary due to changes in global crude fundamentals and replacement costs.
Loading suspended
Reports said that the price review followed the refinery’s suspension of petrol loading operations effective midnight on 2 March, after global crude oil prices surged past the $80 per barrel mark overnight.
Industry sources reported that petrol loading and the issuance of proforma invoices were temporarily halted, effectively pausing fresh PMS transactions.
The development triggered reactions across the downstream sector, with several private depot owners also suspending petrol sales during the trading day in response to the crude rally.
Some depot owners have also halted sales as the market began factoring in risk premiums associated with the sudden spike in crude prices.
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