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🇳🇬 Nigeria /Economy & Trade

Petrol hits N1,230 as Dangote's dollar sales and Iran crisis fuel price hike

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Petrol prices have surged nationwide, with some stations selling at N1,230 per liter, driven by the Dangote Refinery selling to marketers in dollars and rising global crude oil prices.
  • The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned against monopoly and arbitrary pricing, stating it destabilizes the downstream sector.
  • Marketers reported delayed loading at the Dangote refinery, though the company denied this, while high depot prices persist amid market uncertainty.

Fuel prices have escalated across Nigeria, with reports indicating some filling stations are selling petrol as high as N1,230 per liter. This price surge is attributed to two primary factors: the Dangote Petroleum Refinery's decision to sell petrol to marketers in U.S. dollars and a broader increase in global crude oil prices, exacerbated by renewed tensions between the United States and Iran.

We have always said that arbitrary fixing of prices is not what will stabilise Nigeria or the Nigerian economy. We don’t think a situation where, anytime one player sneezes, all of us catch cold is in the best interest of Nigeria.

— Dr Billy Gillis-Harry, National President of PETROANWarning against monopoly and arbitrary pricing in the fuel market.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced concerns, warning that a monopoly and arbitrary pricing practices could undermine efforts to stabilize the country's downstream petroleum sector and the broader economy. PETROAN's National President, Dr. Billy Gillis-Harry, stated that fuel prices should not be dictated by a single market player, advocating for a more stable and competitive pricing framework. "We don’t think a situation where, anytime one player sneezes, all of us catch cold is in the best interest of Nigeria," he remarked.

Adding to the market uncertainty, some marketers reported delayed petrol loading at the Dangote refinery since Wednesday, though the Dangote Group has denied these claims, labeling them as "fake news." A spokesman for the Dangote Group insisted the refinery is operational and loading products. Despite these denials, marketers are reportedly facing difficulties sourcing dollars to purchase petrol from the refinery, while importers are consequently increasing their prices.

The refinery is loading. Anybody can come there to check. That’s fake news to say we are not loading.

— Dangote Group SpokesmanDenying reports of delayed loading at the Dangote refinery.

Meanwhile, petrol loading prices at private depots remained elevated on Friday, with marketers paying between N1,185 and N1,245 per liter nationwide. Data from Petroleumprice.ng showed Matrix Depot in Port Harcourt selling at the highest price of N1,245 per liter, and Masters Depot at N1,240 per liter, reflecting the continued volatility and uncertainty in the downstream petroleum market.

That’s correct. Maybe loading will resume today (Friday).

— Hammed Fashola, National Vice-President of the Independent Petroleum Marketers Association of NigeriaConfirming reports of delayed loading at the Dangote refinery.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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