The Dangote Refinery has implemented a N75 increase on its ex-depot price of Premium Motor Spirit (PMS), raising it to N1,275 per litre. This move has fueled concerns about potential further fuel price hikes across Nigeria.
The refinery has also suspended product sales due to disruptions in its Proforma Invoice process. Price data confirmed the ex-depot price adjustment from N1,200 to N1,275 per litre, with coastal supply prices set at N1,215 per litre.
This development, effective immediately, is already creating ripples in the downstream petroleum market. An official from the Dangote refinery confirmed the price increase and the coastal supply price.
The suspension of sales affects both petrol and Automotive Gas Oil. Traders and marketers are anticipating higher depot costs, which could translate into increased pump prices nationwide.
Industry operators noted that such operational interruptions often lead to higher logistics and distribution expenses, adding to pricing pressures throughout the value chain.
The price adjustment occurs against a backdrop of rising global crude oil prices. Brent crude was trading at $114.80 per barrel, marking a 3.15% increase, while West Texas Intermediate stood at $103.40 per barrel, up by 3.49% as of 10:35 am WAT.
The surge in international oil prices is attributed to heightened geopolitical tensions impacting critical global oil supply corridors. This increase in crude prices raises feedstock costs for refiners, necessitating upward adjustments in refined product pricing.
In parallel, Aliko Dangote, Africa's richest man, saw his net worth climb to $34 billion, a daily gain of $216 million, according to the Bloomberg Billionaires Index. This growth is largely driven by his holdings in cement, oil refining, and fertilizer production.
The Dangote Oil Refinery, Africa's largest, is estimated to contribute about $20 billion to his net worth. His stake in Dangote Cement also remains a significant asset, alongside interests in Dangote Sugar, Nascon Allied Industries, and a large-scale fertilizer plant.
