By Osordi Ayomide
The Dangote Refinery has increased the ex-depot price of Premium Motor Spirit (PMS), raising concerns about renewed inflationary pressure across the Nigerian economy.
The refinery raised its gantry price by N75, from N1,200 to N1,275 per litre, marking an increase of approximately five percent.
This adjustment reflects mounting cost pressures linked to developments in the international crude oil market, where prices have surged amid ongoing geopolitical tensions.
Industry analysts note that while the refinery has significantly improved the domestic fuel supply, Nigeria remains vulnerable to global oil price fluctuations.
With petrol pricing now fully deregulated, local refiners are compelled to align prices with international benchmarks, limiting the extent to which domestic production can shield consumers from volatility.
The latest price review comes as Brent crude trades above $110 per barrel, driven by supply disruptions and heightened uncertainty in key oil-producing regions.
These global dynamics have translated into higher input costs for refiners, including the Dangote facility, which still relies partly on imported crude.
Stakeholders in the downstream sector warn that the increase could have far-reaching implications for transport fares, manufacturing costs, and general consumer prices.
Many small businesses and transport operators, already grappling with high operating expenses, may be forced to pass on these additional costs to consumers.
Although expectations remain high that the Dangote Refinery will eventually stabilize the Nigerian fuel market, recent price adjustments suggest that the benefits of local refining may take longer to fully materialize.
Experts argue that improved access to domestically produced crude and a more efficient supply chain will be critical in reducing production costs and ensuring price stability.
As the global oil market continues to fluctuate, analysts caution that further adjustments in petrol pricing cannot be ruled out, leaving consumers and businesses bracing for continued uncertainty.