By Our Reporter
Dangote Petroleum Refinery has announced an increase in the price of Premium Motor Spirit (PMS), also known as petrol, in response to rising global crude oil prices.
In a statement released on Friday, the refinery revealed that bulk buyers purchasing between 2 million and 4.99 million litres of petrol would now pay N955 per litre. Those buying 5 million litres or more will be charged N950 per litre.
The new pricing represents a 6.17% increase, or N55.5 per litre, compared to the discounted rate of N899.50 per litre offered during the December 2024 holiday period. The revised rates will take effect at 5:30 PM today and will apply to all unsold stock and pending orders.
The price adjustment comes as the global price of crude oil, including Nigeria’s Bonny Light, rose by 5.1%, reaching $82 per barrel, up from $78 the previous day. This increase indicates that refiners are now paying more for crude oil.
According to the Organization of Petroleum Exporting Countries (OPEC), the price hike is driven by market instability and uncertainties, which are expected to persist throughout 2025.
In response to the price adjustments, Senator Heineken Lokpobiri, Minister of State for Petroleum Resources, confirmed on Thursday that petrol prices at the pump would continue to be determined by international crude oil prices. Speaking at the inaugural meeting of the Petroleum Industry Stakeholders Forum (PISF) in Abuja, he emphasized that the downstream sector is now fully deregulated, with the government no longer involved in price setting.
Lokpobiri noted that the deregulation allows prices to “find their level,” meaning petrol prices will fluctuate based on global oil prices. He also mentioned that during the Christmas season, prices at some filling stations reached N1,020 per litre, with others selling for N999 to N1,015 per litre.
He stressed that the government’s primary concern is quality control, ensuring that consumers receive the correct quantity of petrol and are not shortchanged by retail stations.
Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), added that while crude oil prices do affect petrol prices, the relationship is not always immediate. He stated that changes in crude prices don’t always result in immediate price adjustments for petrol and other derivatives, although a correlation exists. He suggested it’s too early to predict the full impact on petrol prices.