PETROL PUMP PRICE RISES TO N1,150 AFTER DANGOTE HIKE

The pump prices of petrol have risen to between N1,050 and N1,150 per litre depending on the area of purchase, following the hike in the cost of the commodity by the Dangote Petroleum Refinery and various depot owners. 

Dealers confirmed that petrol prices would continue to rise since the major component in fuel production, crude oil, has been on the upward swing lately. 

The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, said that petrol prices might soon rise if the cost of crude oil continued to increase.
 “The crude price rose to $80 per barrel. Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo said 

On Friday, there was an upward adjustment in the price of petrol produced by the Dangote Petrochemical Refinery  and as such, it raised its PMS from N899 per litre to N955 per litre at its loading gantry.

 The refinery told customers via email that its refined products would now be priced at the new cost.
 
This represents a 6.17 per cent increase from the N899.50 per litre holiday discount offered last . 

 The price increase has affected the entire fuel supply chain. Private depots, even those with existing stock, have raised their prices to N970 in Lagos and N1,000 in Calabar. 

Other depots made significant adjustments: Sahara increased to N970 from N950, Pinnacle to N970 from N921, and NIPCO to N980 from N950.

 The Independent Petroleum Marketers Association of Nigeria (IPMAN) expects retail prices to reach N1,100 per litre in Lagos and surrounding states, with prices potentially hitting N1,150 in the Federal Capital Territory.

 IPMAN’s National Publicity Secretary, Chinedu Ukadike, explained: “Yes, Dangote has increased its price to N955. This is only because of the increase in Brent crude. Once it increases, the domestic production cost will also increase.”

 The Petroleum Products Retail Outlet Owners Association of Nigeria says retailers cannot sell at N1,000 per litre as their margins would need to be higher than N45. Their president, Billy Gillis-Harry, notes that while some members will continue selling at N935 per litre under an agreement with MRS Oil, prices will likely exceed N1,000 per litre once this agreement changes.