Dangote Refinery Hikes Petrol Price by N75 to N1,275, Halts Sales

The Dangote Refinery's recent decision to increase petrol prices and suspend sales has sent ripples of concern through Nigeria's downstream petroleum sector. The ex-depot price has climbed to N1,275 per litre, with coastal supplies at N1,215, signaling a potential wave of price hikes at the pump nationwide.

This development is particularly worrying given the refinery's significant role in the domestic fuel supply. The disruption in its Proforma Invoice process, leading to a halt in sales of both petrol and Automotive Gas Oil, exacerbates the situation. Traders and marketers are bracing for higher costs, which will inevitably translate to increased expenses for consumers.

The refinery's move comes at a time when global crude oil prices are on the rise, driven by geopolitical tensions. Brent crude and West Texas Intermediate have seen significant increases, pushing up feedstock costs for refiners. This global context, while explaining the pressure on refiners, does little to assuage the fears of Nigerian consumers already grappling with economic challenges.

From our perspective at The Punch, this situation underscores the vulnerability of Nigeria's energy sector to both internal operational issues and external market fluctuations. The reliance on a single major refinery, coupled with global oil price volatility, creates a precarious balance that often tips against the ordinary citizen. The government's efforts to ensure energy security and price stability are once again put to the test.

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Yes, the increase of PMS to N1,275 per litre is true. Coastal price is N1,215.