Nigerians are grappling with yet another hike in the price of premium motor spirit (PMS), with the blame placed squarely on rising global crude oil prices.
The price adjustment, attributed to the Dangote Refinery and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), has left citizens concerned about the ripple effects on daily living costs.
On Friday, Nigerians awoke to a fresh round of price increases. Dangote Refinery, a $20 billion facility with a 650,000-barrels-per-day capacity, raised its ex-depot price for PMS from N899.50 per litre to N950, representing a 5% hike. This adjustment has pushed retail prices to between N970 and N1,150 per litre, depending on the location and retailer.
For instance, MRS filling stations, which have a direct supply partnership with Dangote Refinery, now sell PMS at N970 per litre, up from N935. Similarly, Nigerian National Petroleum Company Limited outlets have raised prices from N965 to N999 per litre. Meanwhile, other independent marketers are selling petrol at prices ranging from N1,040 to N1,150 per litre across the nation.
In a statement, Dangote Refinery explained that the price surge is directly linked to a sharp rise in global crude oil prices. Brent crude, which was trading at $70 per barrel, has now climbed to $82, with Nigerian crude carrying an additional $3 premium. Despite these challenges, the refinery stated that it has absorbed 50% of the cost increases to minimize the impact on consumers.
The spokesperson for Dangote Refinery, Anthony Chijiena, elaborated, “The recent adjustment in our ex-depot price is a direct response to the significant increase in global crude oil prices. Crude oil is the primary input in PMS production, and fluctuations in its price inevitably affect the cost of the finished product. However, we have ensured that the increase is limited to 5%, significantly lower than the 15% rise in crude oil prices. If we were to pass on the full cost increase, the retail price would be between N1,150 and N1,200 per litre in some areas.”
Chijiena also highlighted the company’s commitment to maintaining uniform pricing across Nigeria, stating that logistics costs have been absorbed to ensure consistent retail prices in all 36 states and the Federal Capital Territory (FCT).
PETROAN echoed Dangote’s sentiments, attributing the price increase to external factors beyond their control. Speaking on behalf of the association, its National President, Billy Gillis-Harry, remarked, “The fluctuation in global oil prices is affecting everyone, including our retail members. The current increase is not our doing; it’s a reflection of international market realities.
The latest fuel hike has sparked widespread outrage among Nigerians, with many voicing their frustration over the compounding economic pressures. Deputy President of the Nigeria Labour Congress Political Commission, Prof. Theophilus Ndubuaku, warned of the broader implications of the price surge. “This pump price hike will drive up the cost of food and transportation, exacerbate inflation, and further devalue the naira,” he stated.
Residents like Suleiman Abubakar in Abuja have also expressed deep concerns about the days ahead. “This hike will make life even harder for Nigerians. Food prices and transportation costs will undoubtedly soar. It’s painful to see Dangote and marketers blaming crude oil prices while leaving ordinary citizens to bear the brunt,” he lamented.
As Nigerians contend with the economic fallout of these price adjustments, calls for transparency and policy interventions are growing louder. The rising cost of living, fueled by persistent inflation and fluctuating fuel prices, continues to strain households nationwide, leaving many questioning the sustainability of the current trajectory.
