Dangote Petroleum Refinery has increased its petrol gantry price from ₦1,265 to ₦1,350 per litre, effective Saturday, September 12, adding fresh pressure to fuel costs for petroleum marketers and businesses across Nigeria.
The ₦85 increase represents a 6.7 per cent rise and is the refinery’s fourth upward price adjustment since August 21. The cumulative increase over the period is now ₦185 per litre, or about 15.9 per cent.
The latest adjustment was contained in a circular issued to the refinery’s customers by its Group Commercial Operations. Dangote also increased its coastal delivery price from ₦1,669,545 to ₦1,783,530 per metric tonne.
Customers were instructed to return existing Authority to Collect documents for repricing, after which new volume contracts would be issued for loading under the revised prices.
The increase comes as international oil markets remain elevated following disruptions to crude supplies and shipping routes in the Middle East. Brent crude settled at $104.61 per barrel on Friday after trading above $107 earlier in the week, with concerns over supply disruptions continuing to influence the market.
The pressure on Nigeria’s downstream market is significant because higher crude and petroleum-product replacement costs raise the cost at which marketers replenish their stocks. The new Dangote gantry price is also above a reported PMS landing-cost benchmark of about ₦1,311 per litre.
For businesses, the immediate concern is what happens further along the supply chain. Depot owners and independent marketers will have to reassess their selling prices, while higher petrol costs can feed into transportation, logistics and distribution expenses if the increase is passed through to motorists.
The impact could extend beyond the filling station. Transport operators, delivery businesses, manufacturers and retailers that depend on petrol-powered vehicles and generators may face higher operating costs, potentially putting additional pressure on already tight profit margins.
The latest increase also comes shortly before Dangote Refinery’s planned initial public offering, which is scheduled to open on September 14. The refinery has been expanding its role in Nigeria’s fuel market while preparing a wider expansion that would eventually increase its processing capacity from 700,000 barrels per day to 1.4 million barrels per day.
For now, the key development for the downstream market is whether marketers pass the new wholesale price through to consumers and how international crude prices behave in the coming days. With global oil markets still facing supply uncertainty, Nigerian businesses will be watching fuel prices closely as they plan their operating and logistics costs.
