Dangote Refinery increases petrol price to N1,175
The Dangote Petroleum Refinery has increased the price of Premium Motor Spirit to N1,175 per litre, making it the third increment within a week.
The upward price review which saw the increase of Premium Motor Spirit from N995 to N1,175 per litre was announced to marketers on Monday.
The gantry price of Automotive Gas Oil popularly known as diesel was also reviewed upwards to N1,620 per litre.
According to a report by Punch, a senior official of the refinery who spoke on condition of anonymity confirmed the adjustment.
“Yes, the gantry prices have been adjusted. PMS is now N1,175 per litre while Automotive Gas Oil is N1,620 per litre.
“The market has been extremely volatile, and replacement costs have shifted significantly in recent days. These adjustments reflect prevailing market fundamentals and the cost environment we are currently operating in” the official said.
Reports say that the revised rates had been updated across petroleum depot pricing systems, marking the third increment within a week, as retail pump prices now exceed N1,000 per litre in most states of the federation.
The current hike is not unrelated to the current military operations by the United States and Israel against Iran, which has resulted in a broader regional conflict in the Middle East.
The strait of Hormuz, a sea route to oil vessels was earlier blocked by the Iranian Navy. The United States said however, that the US Navy has degraded the naval power of the Iranian regime by sinking most of Iranian ships to the bottom of the ocean.
The conflict has nevertheless resulted in the upsurge of crude oil prices and temporary scarcity of the commodity globally.
The price system which is regulated by the Organization of Petroleum Exporting Countries (OPEC) has witnessed an upsurge, affecting the prices and sales of crude to refineries across the globe.
Many Nigerians have however wondered why a conflict in the Middle East would affect a country like Nigeria which exports crude, as they expected local refineries to be immuned to such market disruptions if the government had put in place effective policies which regulate the sales and supply of crude to local refineries, separately from foreign buyers.
The latest hike is expected to trigger another round of price increase at filling stations nationwide, as higher fuel costs often mean higher transportation, logistics, and production costs for businesses.
The rising cost of importing crude oil, driven by volatility in the global oil market and supply disruptions linked to the ongoing United States–Israel conflict with Iran has been largely blamed for the current situation.
