The Dangote Petroleum Refinery has ramped up distribution of petrol using Compressed Natural Gas (CNG)-powered trucks, delivering Premium Motor Spirit (PMS) at a depot price of Eight hundred and fifty Naira per litre to various parts of Nigeria. This move aims to sustain supply from the refinery, which has a capacity of 650,000 barrels per day.
However, while Dangote sells petrol at this relatively lower depot price, the Nigerian National Petroleum Company Limited (NNPC Limited) has increased its depot price from Eight hundred and fifty Naira to Nine hundred Naira per litre. Meanwhile, retail prices across the country have surged to as high as Nine hundred and fifty-five Naira per litre, marking a 6.8 percent jump from last week’s prices.
According to Olatide Jeremiah, CEO of Petroleumprice.ng, “Depot prices across the country have generally increased, with petrol selling between Eight hundred seventy and Nine hundred Naira per litre at major depots in Lagos and Calabar.”
In Lagos, where private depots largely depend on imported fuel, prices remain high despite recent adjustments. Companies like Aiteo and Pinnacle are selling petrol at Eight hundred ninety and Eight hundred seventy Naira per litre, respectively, while Integrated Oil and Gas prices petrol at Eight hundred seventy Naira.
In Calabar, Matrix Energy and Northwest Petroleum have priced petrol at Eight hundred ninety and Eight hundred eighty Naira per litre, respectively. Sobaz Depot recently hit the highest mark this month at Nine hundred Naira per litre.
Jeremiah suggested that depot prices might drop significantly once the Dangote Refinery fully completes its rehabilitation, as its scale could have a substantial impact on Nigeria’s domestic fuel market.
Despite the lower prices from Dangote, pump prices have soared. In Lagos and Abuja, petrol is currently sold between Nine hundred and Nine hundred fifty-five Naira per litre, reflecting a clear disconnect between refinery prices and what consumers pay at the pump.
In Abuja, petrol retailers raised their prices by over fifty Naira per litre following the NNPC’s price hike. For instance, Adova Plc increased its pump price from Eight hundred ninety-nine Naira last week to Nine hundred forty-five Naira, while AYM Sharfa raised its price from Nine hundred ten Naira to Nine hundred fifty-five Naira per litre.
The use of CNG trucks by Dangote to distribute petrol more efficiently and cheaply contrasts sharply with the rising prices imposed by NNPC and independent marketers, leaving many Nigerians to question why fuel costs at the pump continue to rise despite efforts to increase supply.
