The recent increase in the price of Premium Motor Spirit (PMS) in Nigeria has been attributed to surging global crude oil prices, according to statements from Dangote Refinery and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
On Friday, Nigerians woke up to a fresh fuel price hike. The $20 billion Dangote Refinery raised its ex-depot price from ₦899.50 per litre to ₦950 per litre, marking a 5% increase. Consequently, retail prices of petrol rose nationwide, ranging from ₦970 to ₦1,150 per litre, depending on the location.
In filling stations with direct partnerships with Dangote Refinery, such as MRS, PMS is now sold at ₦970 per litre, up from ₦935. Nigerian National Petroleum Company Limited outlets have increased prices from ₦965 to ₦999, while other stations sell between ₦1,040 and ₦1,150 per litre.
Responding to the price adjustments, Dangote Refinery, through its spokesperson Anthony Chijiena, explained that the hike was driven by a significant increase in crude oil prices, with Brent crude rising from $70 to $82 per barrel, alongside a premium of $3 per barrel for Nigerian crude. The company revealed it has absorbed 50% of the cost increase to mitigate the impact on Nigerians.
“We recognize the critical importance of affordable fuel and remain committed to offering value and quality. Despite the global crude oil price increase, we have limited the ex-depot price adjustment to 5%, ensuring uniform pricing nationwide. Without our intervention, retail prices would have reached ₦1,150 to ₦1,200 per litre in some areas,” Chijiena stated.
Similarly, PETROAN spokesperson Joseph Obele echoed these sentiments, noting that fluctuations in international crude prices directly affect domestic fuel costs. “This situation impacts everyone, including retail outlet owners. It’s an external factor beyond our control,” said PETROAN National President Billy Gillis-Harry.
The price hike has sparked widespread concern among Nigerians, who fear it will exacerbate the rising cost of living. Prof. Theophilus Ndubuaku, Deputy President of the Nigeria Labour Congress Political Commission, warned of the cascading effects on food prices, transportation fares, inflation, and the value of the naira.
Abuja resident Suleiman Abubakar described the situation as dire, saying, “The coming days will be difficult for Nigerians. With higher fuel prices, food and transportation costs will undoubtedly rise, leaving citizens to bear the brunt.”
The situation highlights the broader economic challenges facing Nigeria, as global oil price fluctuations continue to strain the country’s economy and its citizens.
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