By Juliet Ezeh
The decision by Dangote Refinery to increase its ex-depot price of Premium Motor Spirit to N1,175 per litre has yet to trigger an immediate retail price adjustment across Abuja, creating uncertainty in Nigeria’s downstream petroleum market.
Industry watchers say the delay reflects a combination of existing stock levels, competitive pricing strategies, and cautious response from marketers, despite the refinery’s influence on the country’s fuel pricing structure.
Abuja Retailers Hold Their Ground
Checks across several fuel stations in the Federal Capital Territory showed that pump prices remained largely unchanged nearly 24 hours after the refinery announced the increment.
Retail outlets operated by Nigerian National Petroleum Company Limited continued selling petrol at around N1,261 per litre, while independent marketers such as AA Rano Nigeria Limited, NIPCO Plc, and Ranoil Nigeria Limited maintained pump prices ranging between N1,230 and N1,330 per litre.
Only a few outlets adjusted their prices upward. One station near the headquarters of the Economic and Financial Crimes Commission reportedly increased its pump price by N50 to N1,270 per litre.
Dangote’s Growing Influence on Fuel Prices
Since commencing large-scale domestic supply, Dangote Refinery has increasingly shaped petrol pricing trends across Nigeria’s retail market.
Market analysts note that price adjustments from the refinery typically ripple through the downstream sector, prompting filling stations nationwide to review their pump prices.
However, the current delay in Abuja suggests marketers may be absorbing the cost temporarily or waiting for clearer signals from supply chains before making adjustments that could affect consumer demand.
Crude Oil Surge Adds Pressure
The refinery’s latest price adjustment came amid a sharp surge in global crude oil prices, which climbed above $100 per barrel on Friday.
Rising crude prices generally increase refining costs, putting pressure on domestic petrol pricing even in deregulated markets.
Energy analysts warn that sustained crude price increases could push pump prices higher in the coming days if marketers begin adjusting their retail rates to reflect the new supply cost.
Consumers Brace for Possible Increase
For motorists and businesses in Abuja, the delayed response offers only temporary relief.
If the refinery’s new pricing benchmark fully filters through the supply chain, analysts say retail petrol prices could climb further, especially if crude oil prices remain elevated.
With Nigeria’s fuel market now operating under a largely deregulated framework, pump prices are increasingly dictated by market forces, supply costs, and competition among marketers, rather than government control.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.