Over the weekend, three major fuel operators – Dangote Petroleum Refinery, Aiteo, and AA Rano – raised the depot price of petrol, also known as Premium Motor Spirit (PMS), from ₦821 per litre to ₦823 per litre.
This small increase happened because the price of crude oil in the international market went up from $65 per barrel to $67 per barrel.
Currently, the pump price at filling stations has not changed, but industry experts say prices at the pump could go up this week if the global oil market continues to push costs higher.
Speaking to Vanguard, Olajide Jeremiah, CEO of Petroleumprice.ng, explained that fuel prices are being adjusted more often because of two key reasons:
- Changes in crude oil prices.
- Competition among fuel suppliers in Nigeria’s downstream sector.
Jeremiah added that Nigerians should expect more price adjustments in the coming weeks and that eventually, the changes at depots would reflect at filling stations.
Also speaking, Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the market is very dynamic and reacts quickly to global oil developments. He stressed that Nigeria needs more stable supply and called for the full privatization of government-owned refineries with the involvement of private stakeholders like PETROAN and MEMAN.
Meanwhile, Dangote Petroleum Refinery announced plans to increase its production capacity by 7.7 percent, from 650,000 barrels per day (bpd) to 700,000 bpd.
The refinery has already changed the way fuel flows into Africa. Before now, Nigeria relied heavily on imported fuel from Europe and other parts of the world. But with Dangote’s refinery now producing for both domestic use and export, Nigeria has cut back on fuel imports, freeing up supplies in global markets.
This shift has affected Europe’s gasoline market, with the Organisation of Petroleum Exporting Countries (OPEC) noting that Dangote’s output will continue to reduce Europe’s fuel exports to Africa.
