Fuel prices under pressure as Dangote refinery hikes petrol to N1,275, halts sales

The Dangote Refinery has raised its ex-depot price of Premium Motor Spirit (petrol) by N75 per litre, a move that has sparked fresh concerns over possible increases in fuel pump prices across Nigeria.

The refinery increased its petrol loading price from N1,200 per litre to N1,275 per litre, while coastal supply prices rose to N1,215 per litre, according to market data from Petroleumprice.ng and confirmation from a refinery official on Wednesday.

The development coincided with a temporary suspension of product sales following a disruption in the refinery’s Proforma Invoice (PI) entry system, a key process used to schedule and process fuel loading transactions.

An official at the refinery confirmed the adjustment, saying the increase of PMS to N1,275 per litre is true.

Industry sources also disclosed that the PI system was halted around 4:00 p.m. on Tuesday, leading to an immediate disruption in the loading and sale of petrol and Automotive Gas Oil (diesel).

The suspension has unsettled marketers and fuel distributors, many of whom rely on the refinery for daily product supply. Operators warn that any prolonged disruption could tighten supply and push up distribution costs across the downstream sector.

Analysts say the combined effect of the price increase and temporary sales halt could add pressure on fuel prices at filling stations nationwide, depending on how quickly supply stabilises.

The development comes amid rising volatility in global oil markets, driven by a surge in crude prices and ongoing geopolitical tensions affecting supply routes.

As of Wednesday morning, Brent crude was trading at $114.80 per barrel, representing a 3.15 percent increase, while West Texas Intermediate (WTI) stood at $103.40 per barrel, up 3.49 percent.

Market observers attribute the global price rally partly to concerns over supply security around the Strait of Hormuz, a critical passage for global oil shipments, where tensions often trigger price spikes.

The rise in crude oil prices has increased input costs for refiners, contributing to upward adjustments in refined petroleum product prices globally.