₦airaland Forum

The pump prices of Premium Motor Spirit, popularly called petrol, have risen to between N1,050 and N1,150/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 PMS 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, earlier alluded to this when he pointed out that petrol prices might soon rise if the cost of crude oil continued to increase.

“The crude price rose to $80 per barrel today (Thursday). Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo stated in Lagos.


On Friday, there was an upward adjustment in the price of petrol produced by the Dangote Petrochemical Refinery.

The $20bn plant raised its PMS from N899/litre to N955/litre at its loading gantry.

The refinery, in an email statement sent to its customers and obtained by one of our correspondents, said its refined products would now be priced at the new cost.

It noted that marketers buying between two million and 4.99 million litres would now buy at N955/litre, while five million litres and above would buy at N950/litre.

The amount marks an increase of N55.5 or 6.17 per cent from N899.50/litre announced as a holiday discount for Nigerians last December.

This adjustment applies to all stock balances yet to be lifted by the stated time, while pending stock as of the effective time will also be repriced at the updated rates.

The statement added that the new price regime took effect from 5:30pm on Friday.

The notice, titled, ‘Communication on PMS Price Review’, read, “Dear esteemed customer, Trust this email finds you well.

“Kindly be advised that effective from 5:30 pm today (Friday), an upward adjustment has been implemented on the gantry price of Premium Motor Spirit. Quantity Previous Price (NGN/Litre): 2 million-9.99 million – N899.50; 10 million litres & above – N895.

“Quantity New Price (NGN/ Litre): 2 million – 4.99 million – N955; 5 million litres & above – N950.


“Please note that all stock balances yet to be lifted as of the above-stated time are to be repriced at the new reviewed prices. We shall communicate with customers on their revised volumes based on the reviewed prices, in due course.”

The price increase sparked widespread effects on the downstream petroleum sector, particularly private depots and retail markets.

Findings showed that private depots, despite having old stocks, increased their loading costs to N970 in Lagos and N1,000 in Calabar.

A breakdown analysing petrol price movements at loading depots after the announcement of the new price showed that Sahara depot increased its loading price by N20 to N970/litre from N950/litre on Thursday.

Pinnacle Depot increased its price to N970 from N921, while Wosbab Depot made a similar change to N965 from the N940 it sold a litre of petrol on Thursday.

NIPCO increased its loading costs by N30 to N980 from N950 on Thursday.

Also, a private depot, Rainoil, increased its loading costs to N970 from N950. A private depot, Alkanes, in Calabar, asked retailers to pay N1,000/litre to receive products.

Zone 4 and Mainland depots increased their loading costs to N1,005/litre from N985, which sold products on Thursday.


Marketers speak

Oil marketers operating under the auspices of the Independent Petroleum Marketers Association of Nigeria projected a steep increase in the retail cost of petrol, stressing it could hit N1,100/litre in Lagos and neighbouring states.

IPMAN also said petrol customers in the Federal Capital Territory might pay N1,150 for a litre.

The IPMAN National Publicity Secretary, Chinedu Ukadike, said the product would now trade for more than N1,000/litre, especially in hinterlands nationwide.

He stressed that the new change was due to the recent surge in the price of crude oil globally.

Ukadike said, “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.

“Nigerians will likely pay over N1,150 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.

“This change is immediate because crude oil prices, too, are immediate. The refinery told us it has taken effect today, which means prices have increased already. Deregulation in this sector means price will be controlled by forces of demand and supply.

“So, if the force of supply says Brent crude has increased, it means domestic costs will also change. It is no longer funny now. Even marketers are affected by this up-and-down dwindling of prices. It affects our business.”

The Petroleum Products Retail Outlet Owners Association of Nigeria said retailers could not buy a litre of petrol and sold at N1,000/litre, adding that the margin would be higher than N45.

The PETROAN National President, Billy Gillis-Harry, said the Dangote PMS was exclusive of charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and that would form part of what retailers would add to the margin.

Though Gillis-Harry said he could not confirm the exact price of petrol at filling stations, he noted that it would be higher than N1,000/litre.

According to him, PETROAN members would still sell at N935/litre due to the agreement they have with MRS Oil, pending when the agreement changes.

“I’ve already told you that it’s difficult to do any effective amateur projection on price modulation. One of the reasons is that the cost of the production, the selling price, and the landing price, all of that will be taken into consideration. And the PIA (Petroleum Industry Act) has given provisions for how the price will be computed.

“So, at all times, we’ve got to depend on the PIA’s prescription for pricing. You know, the other day you called me and you told me about an association that said the price could be N500/litre. You can see how false the projections are. So, that means they are not informed by any empirical value,” Gillis-Harry stated.

He spoke further that since he got information about the price change, his team had been making analysis.

“So, before I can speak on prices, I must get the feedback from them, from at least 10 states, and maybe four or five depots. So, for today, you can quote me to say, yes, there is going to be a price change, but that price can only come, maybe by the close of tomorrow (Saturday).

“Because right now, we still have an obligation with the MRS to be selling at N935, and some of us bought products there. So, if they change their prices because of the Dangote price, then the conversation will be different.

“After the price of buying, there must be the price of logistics. Once that is computed, we can then look at what is the most humane profit margin,” he submitted.

An oil and gas expert, Olatide Jeremiah, said depots were poised to increase the loading price of refined petroleum products because of the heavy influence of the refinery.

Jeremiah, who is the Chief Executive Officer of petroleumprice.ng, said, “Dangote refinery’s influence on fuel price has become unmatched; private depots, major marketers, and independent marketers will compete with this new price. Therefore, Nigerians should expect an increase in the pump prices of petrol.

“Brent crude oil as of today (Friday) is $81.84, highest in 2025, it is one major factor for the increase.”

Source: https://punchng.com/Petrol-pump-price-surges-to-N1,150-after-Dangote-hike

That is what deregulation connotes but Nigerians like to believe it should be much lower than that and of a fixed price.

It will favour me and my family. When we told you, it was Christmas gift or Greek gift

When will this back and forth movement of Nigeria stop?

Prices will become very unstable again

I thought they claimed that two refineries have started working at full capacity and that we should expect price of petrol to fall below #500/l this week.


Propaganda does not fix economy.

Operation sell as you take buy.

Elofokanbale, a a ma gbe waale

Reality check...
Welcome back!!!

This is what happens when you allow dumb illiterates to vote.

Honestly, I am confused at the government arrangements with the agreement between it and Dangote.
Since the crude is supplied to Dangote in Naira, is the global spike in the crude oil prices supposed to affect it? The crude is local, the Naira is local, all are in a stable condition, so why the increase.

This government of Tinubu is not sincere in all it does. There is no transparency in this at all.

iwaeda:
It will favour me and my family.

^^^

E no fit better for batimumus

Apc, a cancer

May Allah bless us all to be Able to cope with everything!

All it takes is one major geo-political event that pushes the price of crude into triple digits...and then Nigerians will all understand the true meaning of pain and suffering.

We already have the conflict in the Middle East and the war between Russia and Ukraine. All it takes is another problem (any problem!) that affects oil prices. That's all it takes.

If oil prices go through the roof, the BAT administration has some interesting choices to make. Stand back and allow those high prices to squeeze the life out of Nigerians...or quietly re-introduce subsidies without ever admitting it publicly. Since the administration has its eye on re-election in a couple of years, it will definitely want to avoid the high political cost of skyrocketing petrol prices... and all this empty, noisy talk about BAT's courage, vision etc. will fly out of the window and subsidy will be re-introduced. What happens then?

Na the monopoly wey dem dey talk be this, just imagine the nonsense.

Nigeria is a mirage.

I don't understand this country anymore, to be honest

As expected. When there is a reduction in pump price, it will take marketers days to implement but the minute they hear there's an increase, they stop all sales immediately and update their meters.

I've said it countless times... we're our own problem.

Deregulation

Standing5:
That is what deregulation connotes but Nigerians like to believe it should much lower than that and of a fixed price.

Indeed

But the thing is, Nigerians are fixated on the idea of fuel must be cheap

That's why.most of them were protesting in 2012. Despite the fact that cheap fuel back then was eating most of our revenue

Hahahaha, we talk am before say na agbado economic policies, some people say na lie.
How e be now?

nairalanda1:
That's why.most of them were protesting in 2012. Despite the fact that cheap fuel back then was eating most of our revenue

For them to have the guts to carry coffin for a president that gave them life of luxury, Nigerians must learn the hard way. Buhari and emolakun is just the beginning

andyprez:
As expected. When there is a reduction in pump price, it will take marketers days to implement but the minute they hear there's an increase, they stop all sales immediately and update their meters.

I've said it countless times... we're our own problem.

This!!

It took almost two weeks for the price to drop to 970 before and some even left it at 1000 on the dot but to increase it they don't waste time at all. Na wa

iwaeda:
It will favour me and my family. When we told you, it was Christmas gift or Greek gift

Price will always go up and down. That's what we have in the US and other advance economies.
Price is never static.
Price of petrol will fluctuate depending on many factors including price of crude oil and other factors.
Price is not set by any govt, the market determines the price. That's how real economy works.

Christmas and new year don finish, so I am not surprised at all.

kushercain:
This!!

It took almost two weeks for the price to drop to 970 before and some even left it at 1000 on the dot but to increase it they don't waste time at all. Na wa

After some miscreants will adjudge Nigeria problem to religion. Na religion cause this one too?
Nigerians could be so 9ce and same time deadly. A set of confused werey people.

IronCondemned:
Honestly, I am confused at the government arrangements with the agreement between it and Dangote.
Since the crude is supplied to Dangote in Naira, is the global spike in the crude oil prices supposed to affect it? The crude is local, the Naira is local, all are in a stable condition, so why the increase.

This government of Tinubu is not sincere in all it does. There is no transparency in this at all.

Watch how some urchinstons, paid agents, and BATerians defend this, telling you that oil is a global commodity priced in dollars. You may then begin to wonder what the purpose and benefits were of the naira crude deal between NNPCL and Dangote

According to some APC föøls if you cannot afford to buy petrol for your car buy water and pour into the tank.

adenigga:
Source: https://punchng.com/Petrol-pump-price-surges-to-N1,150-after-Dangote-hike

So na Dangote dey control petrol price now no longer NNPC

TaminaliaCatapa:
retvrded sons of agbado bi+ches: THIEFnvbu’s policies are working.

Me:

Me, I think that tinubu is a hypocrite, and a crook.

But if your governments in the past had removed subsidy, you would have said the same thing. If GEJ had removed subsidy in 2012, you would have cursed his supporters.

Also, let's imagine that government had kept subsidy as it was since 2012, or even since 1999. By now, fuel subsidy costs would have been at least 36 trillion naira or more annually. Our budget for this year was around 49 trillion. That means that once we have paid for subsidy for the year we don't have much left.

SO, at the end of the day we take loans. The problem is, IMF Is getting tired of our loan begging...so they have been refusing loans. You can guess what would be happening now? No money to pay for ANYTHING...and a debt that keeps growing.

Nothing is cheap in this life. Ghana has expensive fuel. Even more expensive than ours, ditto Niger. And they have working refineries because the profits made keep them working. And they have crude.

Note that if we had removed subsidy in 1993 , we would have long since been over the worst, and even have been earning tons of dollars in the billions from export. But you NIgerians kept on saying no. Even this removal....Tinubu was forced to remove because the debt was getting too too much. And he was among those leading the charge in the past to say no. See how karma is dealing with him.


Make we wake up. Petrol is not cheap. All the workers in dangote refinery want to be paid global standard salary, not Naija standard. All the people transporting and selling the fuel want to be paid. And they are Nigerians like you suffering under this t-pain economy. Maybe you want them to suffer loss so that you can enjoy cheap fuel. Sadly, life is not like that.


Or maybe you should pay half your income so that we can all have cheap fuel...all of us should do...because that is how they pay for subsides in most saner climes. And the said subsides are not for everyone self.





Look, like I said, I don't support tinubu. But let's forget about politics and think in economic terms.