Fuel Prices Rise Again
Dangote Refinery Price Hike Triggers Fuel Cost Increases Across Nigeria
Anonymous
Key Points
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Dangote Refinery’s latest increase was its fourth upward revision since August 21, lifting the gantry price by ₦185 per litre, or about 15.9%, in just 22 days.
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The refinery also raised its coastal delivery price from ₦1,669,545 to ₦1,783,530 per metric tonne and instructed customers to return existing Authority to Collect documents for repricing before receiving new volume contracts.
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The higher gantry price moved above the reported petrol landing cost of ₦1,311 per litre, underscoring the pressure on downstream operators even as domestic refining capacity expands.
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A petrol attendant at an MRS station said consumers were still buying older stock at ₦1,395 per litre and warned that prices would be higher once new stock arrived: “We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher.”
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Some stations outside Abuja had not yet adjusted their prices when checks were conducted; in Lagos and Ogun, observed prices included ₦1,395 at MRS Alapere, ₦1,385 at Mobil, ₦1,360 at Matrix in Kara and ₦1,380 at an NNPC station in Ibafo.
Nigeria's petrol prices jumped sharply after Dangote Petroleum Refinery raised its wholesale price by ₦85 to ₦1,350 per litre. Retail pump prices across Abuja now range from ₦1,395 at MRS to ₦1,430 at NIPCO. Reuters reported that Brent crude trades above $100 per barrel, pressuring local refiners and distributors.
This marks the refinery's fourth price increase in just 22 days, lifting the gantry price by ₦185 per litre since August 21. Labor unions and economists warned the hike will drive up transportation, food, and production costs while worsening Nigeria's inflation crisis and household hardship.
Dangote's Rapid Price Climb Outpaces Landing Costs
The ₦1,350 per litre gantry price now sits above the reported petrol landing cost of ₦1,311 per litre. The refinery also raised its coastal delivery price from ₦1,669,545 to ₦1,783,530 per metric tonne. Customers must return existing Authority to Collect documents for repricing before receiving new supply contracts.
A petrol attendant at MRS warned consumers will face steeper prices once new stock arrives. "We are currently selling our old stock at ₦1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher," the attendant said. Stations outside Abuja have not yet fully adjusted pricing.
Global Oil Disruptions Push Prices Higher
Brent crude trading above $100 per barrel reflects global supply pressures. Yahoo Finance reported that Saudi Arabia shut a major crude pipeline after drone attacks from Iraq, disrupting a key route that bypassed the Strait of Hormuz during the US-Iran conflict. The closure deepened the global energy crisis.
Weak Nigerian exchange rates and rising logistics costs compound the pressure on domestic refiners. These factors force Dangote and other operators to pass costs to consumers. Global energy instability means further price increases could arrive with each new shipment.
Economists Warn of Cascading Economic Damage
Labor leaders and economists cautioned that higher fuel costs will ripple through Nigeria's economy. Transportation firms will raise fares. Food producers will hike prices. Manufacturing costs will climb. Inflation—already a major concern—will worsen, squeezing household budgets across the nation.
Despite Nigeria's expanding domestic refining capacity at Dangote, economists urged stronger consumer protections. They called for government intervention to shield poor families from fuel-driven price shocks. Without action, purchasing power will erode faster as petrol pushes up the cost of living.
Price Variation Shows Supply Chain Strain
Petrol prices vary widely across Nigeria's regions. In Lagos and Ogun, pricing checks found ₦1,395 at MRS Alapere, ₦1,385 at Mobil, ₦1,360 at Matrix in Kara, and ₦1,380 at an NNPC station in Ibafo. The variation reflects uneven distribution and timing of new shipments entering different markets.
Abuja's tighter pricing—₦1,395 to ₦1,430—suggests faster turnover of new stock in the capital. As higher-cost supplies arrive nationwide, prices will converge upward. Marketers warn consumers to expect further increases within days as old inventory sells through.
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