Dangote Refinery has raised the ex-depot price of Premium Motor Spirit (PMS) by N75 per litre to N1,275, intensifying pressure on Nigeria’s downstream petroleum market and raising the prospect of higher pump prices nationwide.
The adjustment, confirmed by industry sources on Wednesday, represents a 3.15 per cent increase from the previous N1,200 per litre, with coastal supply prices also rising to N1,215 per litre.
The price hike comes amid an increase in global crude benchmarks, with Brent crude trading around $115 per barrel and West Texas Intermediate hovering near $103.
Compounding the pricing shift, the refinery has temporarily suspended its Proforma Invoice (PFI) processing system, effectively halting the scheduling of product loading.
A source familiar with the development said the suspension, which began around 4:00 pm on Tuesday, led to an immediate stoppage of both petrol and Automotive Gas Oil sales, disrupting supply flows across the distribution chain.
The dual impact of rising prices and supply interruption is already reverberating through the market, with marketers and depot operators bracing for higher procurement costs.
Industry players warn that increases at the ex-depot level typically cascade quickly through the value chain, affecting transportation, storage and retail margins.
Higher depot prices are expected to translate into increased pump prices, particularly as logistics costs rise alongside tighter product availability.
The development also underscores the sensitivity of Nigeria’s fuel pricing structure to global oil market movements, especially in a deregulated environment where domestic prices are closely linked to international benchmarks.
The latest adjustment is closely tied to escalating geopolitical tensions affecting global energy supply routes, particularly around the Strait of Hormuz, through which a significant share of global crude flows.
Rising crude prices have increased replacement costs for refiners, forcing upward revisions in refined product pricing to maintain margins.
