Dangote petrol price hike pushes pump prices near ₦1,300 per litre as businesses warn of rising inflation and higher transport costs
The Dangote Petroleum Refinery, led by Managing Director and Chief Executive Officer David Bird, has implemented another increase in petrol prices, raising its gantry price of Premium Motor Spirit to ₦1,175 per litre and triggering fresh inflation fears across Nigeria.
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The latest Dangote petrol price hike pushed pump prices at several filling stations to about ₦1,300 per litre on Monday, with some outlets selling between ₦1,250 and ₦1,400 nationwide as marketers quickly adjusted their prices.
Economists and leaders of the Organised Private Sector warned that the development could sharply increase business costs, fuel inflationary pressure and drive up the prices of transport, food and other essential goods.
The adjustment came after the refinery raised the gantry price from ₦995 to ₦1,175 per litre, representing an increase of ₦180 or about 18.1 per cent within three days. The refinery also raised the price of diesel to ₦1,620 per litre.
Industry checks showed that the revised rates had already been reflected on the petroleum depot pricing platform, signalling a shift in the benchmark price used by downstream marketers.
Several filling stations responded swiftly. A Dangote-backed MRS outlet in Olowotedo raised its pump price to ₦1,250 per litre, while a nearby NIPCO station sold the product at ₦1,200.
In Abuja, stations along Airport Road also adjusted their prices. Shafa and AA Rano sold petrol at ₦1,092 per litre, while Optima dispensed the product at ₦1,270 per litre.
The refinery defended the price adjustment, citing extreme volatility in global oil markets following tensions linked to the ongoing United States and Iran conflict.
David Bird said global crude prices had surged from the mid-$60 range to nearly $120 per barrel within a week, while freight costs for oil shipments had jumped from about $800,000 to nearly $3.5 million.
The refinery chief explained that the facility buys crude at international benchmark prices even under the crude-for-naira arrangement, leaving it fully exposed to global commodity fluctuations.
Despite the turbulence, David Bird said the refinery continues to operate at its full nameplate capacity of about 650,000 barrels per day and remains committed to ensuring supply stability for Nigeria.
Industry groups said the surge may only be temporary. Chinedu Ukadike, spokesman for the Independent Petroleum Marketers Association of Nigeria, said prices could ease once crude oil prices fall after the conflict subsides.
Business leaders, however, warned that the current spike could already have wide-ranging economic consequences.
Dr Chinyere Almona, Director-General of the Lagos Chamber of Commerce and Industry, said the rise in pump prices had begun to affect logistics costs, particularly for food distribution.
Dr Chinyere Almona warned that the Middle East crisis could also raise global freight costs, increasing the price of imported goods and potentially reversing recent progress in moderating inflation.
Adewale Oyerinde, Director-General of the Nigeria Employers’ Consultative Association, said higher energy costs inevitably drive production and distribution expenses across sectors.
Adewale Oyerinde explained that companies facing rising operational costs often transfer the burden to consumers through higher prices of goods and services.
Small business operators expressed similar concerns. Dr Femi Egbesola, President of the Association of Small Business Owners of Nigeria, said the petrol increase would likely raise transportation, manufacturing and logistics costs.
Dr Femi Egbesola said rising fuel prices typically trigger a ripple effect across the economy, pushing up the prices of commodities and weakening consumer purchasing power.
Labour leaders also criticised the development. Christopher Onyeka, Assistant General Secretary of the Nigeria Labour Congress, said the surge highlights structural weaknesses in Nigeria’s downstream petroleum sector.
Christopher Onyeka argued that the continued influence of global oil shocks on domestic petrol prices raises questions about the extent of the country’s refining independence.
Meanwhile, international energy markets remain under pressure.
Oil prices surged close to $120 per barrel before easing to about $98 after the Group of Seven nations discussed possible emergency releases from strategic oil reserves.
Also read: FAAN issues 100,000 airport access cards amid cashless disruption
Industry observers say the situation remains volatile, warning that if geopolitical tensions persist, petrol prices in Nigeria could climb even higher in the coming weeks.
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