Dangote Petroleum Refinery’s latest petrol price increase to N1,200 per liter, the second within a single week, arrives as crude oil markets point in the opposite direction, raising questions among downstream operators about the pricing methodology applied by Nigeria’s largest domestic refinery.
The refinery’s Group Commercial Operations issued the price change in an official communication to customers on Tuesday, titled “PMS Price Change Communication (N1,185 per Liter to N1,200 per Liter),” directing all customers to take note of the revised depot prices for gantry and coastal deliveries.
The coastal price also rose under the new schedule, climbing from N1,562,265 per metric tonne to N1,582,380, while the gantry price moved from N1,185 to N1,200 per liter, according to a pricing table included in the circular sent to customers.
The refinery directed customers to return all authorization to collect documents for repricing. “You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption,” the notice stated, adding that customers could contact the refinery for further clarification.
Marketers and depot operators who received the circular are understood to have begun returning existing ATCs for repricing, in line with the refinery’s directive, as loading operations were set to resume under the revised pricing terms following receipt of the communication.
The N15 per liter gantry increase follows a similar upward adjustment made just days earlier, when the refinery raised the PMS price from N1,165 to N1,185 per liter. Industry trackers confirmed that the previous adjustment took effect from midnight on Thursday, placing the two increases within less than a week of each other.
The back-to-back price hikes stand in contrast to movement in international oil markets, where data from oilprice.com on Tuesday showed West Texas Intermediate crude trading at $82.13 per barrel, a decline of $2.88, or 3.39 percent, from prior levels, weakening the cost argument for a domestic price increase.
Brent crude also traded lower, standing at $88.37 per barrel on Tuesday, down $3.80 or 4.12 percent. Murban crude recorded a steeper fall, shedding $8.73, or 8.61 percent, to trade at $92.71 per barrel, according to oilprice.com data cited in the refinery pricing period.
The N15 increase carries downstream implications, as oil marketers will factor in transportation, landing, and other costs on top of the new gantry rate. Petrol pump prices are expected to return to an average of N1,250 per liter across retail outlets as the revised pricing filters through the supply chain, affecting millions of consumers nationwide.
The Dangote Group had not responded to messages sent by reporters seeking comment on the basis for the price increase at the time of publication, leaving no official explanation on record for the decision to raise prices as global crude costs fell.
The price adjustment comes during renewed volatility in international oil markets, driven in part by the ongoing conflict between the United States and Iran. Reuters reported that oil prices fell as investors assessed the latest round of US sanctions against Iran as less threatening to global oil supplies than a direct military confrontation would be.
Analysts warned, however, that the market decline could represent an overreaction, noting that prices could rise sharply if Iran responds with military action. The Strait of Hormuz, a critical global oil transit route, recorded only two commodity vessel transits on Monday, the lowest daily figure since early May, Reuters reported.
The waterway previously handled approximately one-fifth of global oil consumption before the conflict began, leaving global supply chains exposed to further disruption if the security situation deteriorates. The combination of market uncertainty and domestic pricing pressure places Nigerian fuel consumers in a precarious position heading into the final days of August.
