The price of fuel in Nigeria surges to N1,150 per litre after Dangote Refinery announces a significant price hike, sparking nationwide concern over rising living costs.
The retail price of Premium Motor Spirit, also known as petrol, has risen to between N1,030 and N1,150 per litre due to an increase in prices by Dangote Refinery and ex-depot costs.
On Friday, OBASANJONEWS24.COM reported that the $20 billion Dangote Refinery announced a new increase in its ex-depot price from N899 per litre to N955 per litre.
In an email to its customers, Dangote Refinery announced a new pricing structure. Marketers purchasing between two million and 4.99 million liters will now pay N955 per liter, whereas those buying five million liters or more will be charged N950 per liter.
This marks a N55 or 6.17 percent increase in petrol prices from the N899.50 per litre rate that was announced as a holiday discount for Nigerians last December.
The petrol price hike by Dangote Refinery led to varying levels of retail price adjustments at different filling stations.
Chinedu Ukadike, the spokesperson for the Independent Petroleum Marketers Association of Nigeria, confirmed that their members’ filling stations nationwide might sell the product at prices exceeding N1,100 per litre.
Commuters are expected to pay more than N1,150 per litre in distant locations, whereas areas near the depot will be charged N1,100. This difference is due to an additional logistics cost of approximately N50. At present, ex-depot prices have risen to N980.
“This change takes effect immediately due to the immediate rise in crude oil prices,” he stated.
Meanwhile, Billy Gillis-Harry, the president of the Petroleum Products Retail Outlet Owners Association of Nigeria, stated that while it is premature to predict petrol retail prices following Dangote Refinery’s price increase, it is clear that costs will rise.
“Right now, we still have a commitment to the MRS to sell at N935, and some of us purchased products there.”
If they adjust their prices in response to the Dangote pricing, then the conversation will take a different turn.
Peoplesmind
