Dangote Increases Petrol Price As Brent Falls By $5

The Dangote Petroleum Refinery has adjusted its Premium Motor Spirit (PMS) gantry price upward by an additional N15 per litre.

The latest revision moves the cost from N1,185 to N1,200, with the new billing rate taking effect on Wednesday, August 26.

This price hike arrives just five days after the facility reviewed its pricing structure upward by N20, moving from N1,165 to N1,185 per litre. Consequently, the total increase in the refinery’s gantry price stands at N35 per litre within a five-day window. The current market adjustment is notable as it occurs while global crude oil costs are trending downward.

Market data shows that Brent crude was trading at $93.48 per barrel when the previous N20 increment was announced on August 20. However, prices dropped to approximately $88.48 per barrel by Tuesday, marking a decline of about $5 per barrel or over five percent.

Furthermore, figures from Reuters indicated that Brent experienced a single-day drop of $3.74 to settle at $88.43 on Tuesday following market reactions to updated United States sanctions against Iran.

The divergence highlights that while the plant pushed up petrol costs when crude traded above $93 per barrel, it has applied a secondary markup as international benchmark rates fell below $89 per barrel.

Details of the revised rates were disclosed in an official commercial notice issued by Dangote Petroleum Refinery and Petrochemicals FZE to Petroleum price.ng.

In addition to the gantry adjustments, the company raised its coastal PMS rate from N1,562,265 to N1,582,380 per metric tonne, registering a difference of N20,115 per metric tonne.

This development is anticipated to trigger commercial pressure across downstream market operations, particularly within the depot sector where distributors continuously revise product prices based on supply terms and replacement expenses.

As of Monday, PMS traded at N1,197 per litre at the A.A. Rano depot in Lagos, whereas African Terminal and Integrated depots posted prices of N1,195 per litre.

These pricing changes coincide with shifting conditions across global energy markets. Brent crude previously rose to $91.62 on August 19 before surpassing $93 the following day due to anxieties over potential supply bottlenecks around the Strait of Hormuz. Rates subsequently eased to $92.17 on Monday before experiencing a sharp decline on Tuesday.

Between August 20 and August 25, Brent lost nearly $5 per barrel, contrastingly coinciding with the refinery adding N15 to its petrol cost structure.

According to Petroleumprice.ng, the refinery has requested buyers to submit all pending Automated Truck Loading (ATC) tickets for repricing to reflect the revised terms. Additionally, fresh volume agreements will be processed to allow distribution activities to resume under the updated commercial guidelines.

The updated coastal pricing structure will also affect wholesale off-takers sourcing PMS via marine routes, with the N1,582,380 per metric tonne standard taking effect from August 26.