…As depots, filling stations adjust prices By Udeme Akpan, Energy Editor Dangote Petroleum Refinery has resumed gantry loading of Premium Motor Spirit (PMS), also known as petrol, in naira after a week-long suspension, ending uncertainty in the downstream sector over its temporary shift to dollar-denominated sales. Checks by Vanguard showed that the refinery has fixed its new ex-depot (gantry) price at N1,215 per litre, representing an increase of N140 per litre, or 13.02 per cent, from the previous price of N1,075 per litre. The increase in the gantry price is directly linked to the sharp rally in global crude oil prices, which has raised the cost of producing refined petroleum products, including petrol, diesel and aviation fuel, heightening concerns over fresh fuel price hikes in Nigeria and other oil-importing countries.
Market data on Wednesday showed that Brent crude, the international benchmark against which Nigeria’s crude is priced, climbed 3.18 per cent to $93.90 per barrel, while West Texas Intermediate (WTI) rose 2.74 per cent to $86.65 per barrel. The price adjustment also comes at a time when domestic petrol prices have already risen sharply following increases in ex-depot prices by major suppliers, raising fears of another round of increases at filling stations. The resumption of naira-denominated truck loading is expected to improve product availability after supply disruptions caused by the suspension.
Industry sources confirmed that marketers had been notified of the resumption of gantry operations, with loading set to commence immediately under the revised naira pricing structure. The development comes barely 24 hours after the 650,000 barrels-per-day refinery resumed coastal loading of petrol at a higher price. Checks showed that the refinery increased its coastal loading price to $1,161.23 per metric tonne, from $1,044.62 per metric tonne, representing an 11.2 per cent increase.
The refinery’s return to naira pricing for truck loading follows several days of uncertainty in the downstream petroleum market after the suspension forced many independent marketers to source products from private depots. The disruption tightened supply and pushed ex-depot petrol prices in Lagos to as high as N1,275 per litre, compared with Dangote Refinery’s previous gantry price of N1,075 per litre before sales were suspended.
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