Ex-Depot Price Increase Triggers Retail Adjustments Across Nigeria
The retail price of Premium Motor Spirit (PMS), popularly known as petrol, has surged to between N1,030 and N1,150 per litre across Nigeria. This sharp increase follows a price adjustment by Dangote Refinery, which raised its ex-depot price from N899 per litre to N955 per litre on Friday.
In a notice sent to its customers, Dangote Refinery confirmed that marketers buying between two million and 4.99 million litres will now pay N955 per litre, while those purchasing five million litres or more will pay N950 per litre. This represents a 6.17% increase from the previous ex-depot price of N899.50 per litre, which had been offered as a holiday discount last December.
The price adjustment has already affected retail prices at filling stations nationwide. According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), petrol now sells above N1,100 per litre in many locations, with prices exceeding N1,150 per litre in remote areas.
“Commuters will likely pay over N1,150 per litre at faraway locations, while locations close to the depot will pay N1,100. This is because we will add about N50 logistics costs. Currently, ex-depot prices have increased to N980,” said Chinedu Ukadike, spokesperson for IPMAN.
In Abuja, several filling stations have already implemented price adjustments. Outlets that sold petrol at N980 per litre on Friday morning increased their prices to between N1,040 and N1,155 per litre by the evening. However, Nigerian National Petroleum Company Limited (NNPCL) outlets maintained their price at N965 per litre.
The president of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged the price hike but noted that some marketers still sell at N935 per litre due to existing agreements.
“Because right now, we still have an obligation with the MRS to be selling at N935. If they change their prices because of the Dangote price, then the conversation will be different. Once logistics costs are factored in, we can determine the most humane profit margin,” he said.
Crude Oil Influence
The increase in petrol prices coincides with a rise in crude oil prices, which recently hit $81 per barrel. Depot owners had also adjusted their prices earlier this week, signaling that further hikes were imminent.
Background
In December 2024, petrol prices had dropped to between N935 and N1,100 per litre, offering temporary relief to Nigerians. However, the latest adjustments have reignited concerns about affordability and transportation costs across the country.
