By Isaac Mission
Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS) at its gantry by N85 per litre, moving the wholesale price from N1,265 to N1,350.
The latest adjustment represents a 6.7 per cent increase and comes amid a sharp rise in international crude oil prices and the cost of replacing imported petroleum products.
The new price has also surpassed the current PMS landing-cost benchmark of N1,311 per litre, potentially putting additional pressure on depot owners and independent fuel marketers as they review their own prices.
Dangote Refinery had previously kept its Lagos gantry price at N1,265 per litre despite rising global oil market pressures. However, the continued increase in crude prices and international replacement costs has now prompted the latest upward adjustment.
The effect is already being reflected across the downstream petroleum market, with depot operators reviewing their prices and stock positions in anticipation of higher replacement costs.
Market participants said the pressure is not limited to Lagos, with concerns also being reported in major coastal petroleum trading centres such as Warri, Port Harcourt and Calabar.
Despite the general upward trend, the price of petrol at individual depots may differ depending on available inventories, suppliers, product sources and prevailing market conditions.
The new N1,350 ex-gantry price is expected to serve as an important reference point for petroleum marketers. Their next pricing decisions will largely depend on movements in global crude prices and international petroleum product replacement costs.
The latest development comes against the backdrop of a significant rally in global oil prices. Brent crude, the benchmark used in pricing Nigeria’s crude oil, reportedly climbed above $100 per barrel, while US West Texas Intermediate rose to about $95.70 per barrel.
The increases have pushed both major benchmarks substantially above their levels at the start of the year, heightening concerns over the possibility of a prolonged energy-price shock.
A sustained increase in crude prices could have wider consequences for the cost of petrol, diesel, aviation fuel and electricity generation, while also increasing transportation and production costs across various sectors.
The recent oil rally has been linked to escalating tensions in the Middle East, with reports of attacks involving Iranian oil tankers in the Gulf of Oman and another vessel close to Kharg Island, a major Iranian oil export hub.
Reports of attempted missile attacks involving a US Navy warship have further raised concerns that the conflict could expand and disrupt important oil-producing and shipping routes.
If global crude prices remain elevated, further price adjustments across Nigeria’s downstream petroleum market cannot be ruled out.