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By Philip Nwosu
The Dangote Petroleum Refinery has increased its Premium Motor Spirit (PMS) gantry price by N101, raising the ex-depot rate from N774 to N875 per litre, sparking fresh concerns over potential fuel price hike nationwide.
A senior official at the refinery confirmed the development yesterday, attributing the adjustment to volatility in global crude oil prices.
“Yes, the price has been reviewed. The new gantry price is now N875 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official said.
Checks indicated that the revised price had already been reflected in downstream pricing benchmarks, signalling an immediate market impact.
The increase followed the refinery’s decision to suspend petrol loading operations effective midnight on March 2, after international crude oil prices surged past the $80 per barrel mark overnight.
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Industry data showed that PMS loading stopped at exactly midnight, halting product lifting and the issuance of Proforma Invoices — a move that effectively paused fresh transactions. However, the suspension applied only to petrol, as Automotive Gas Oil (diesel) continued to load.
The refinery’s action triggered a broader response across the downstream sector, with several private depot owners reportedly halting PMS sales during the trading day.
“Several depot owners suspended PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator said.
The development comes amid heightened volatility in global oil markets linked to tensions between the United States and Iran, raising concerns about possible supply disruptions, particularly along the strategic Strait of Hormuz.
Energy analysts have warned that Nigeria could witness further increases in petrol and diesel prices if crude oil prices climb above $90 per barrel. According to industry experts, prolonged hostilities in the Middle East could disrupt global supply chains, push up shipping and insurance costs, and increase import and refining expenses — despite Nigeria’s expanding local refining capacity.
Market watchers say the latest price adjustment may soon translate into higher pump prices across the country if the crude rally persists.
