Petrol prices have risen across Abuja, with independent petroleum marketers attributing the latest increase to successive adjustments in the gantry price of Premium Motor Spirit (PMS) by the Dangote Refinery.
Chief Chinedu Ukadike, Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said marketers were compelled to review their pump prices following a series of price increases by the refinery within the past week.
According to Ukadike, the Dangote Refinery raised its gantry price from N1,165 per litre to N1,185 and later to N1,200 within seven days.
“Every time Dangote increases his price, our price will also rise,” he said, explaining that marketers could not continue selling petrol below the cost of replacing their stocks.
The latest increase has been reflected at filling stations across the Federal Capital Territory.
Checks by Vanguard on Thursday showed that NNPC Retail stations, which previously sold petrol for N1,250 per litre, had increased their price to N1,270. TotalEnergies stations also adjusted their price from N1,250 to N1,275 per litre, while Bovas stations increased theirs from N1,253 to about N1,275 per litre.
Ukadike said the frequent price adjustments were creating uncertainty for marketers and consumers, particularly because replacement costs could change significantly within a short period.
He noted, however, that petrol price fluctuations were not driven solely by domestic refinery prices, as international crude oil prices, foreign exchange movements and geopolitical developments affecting global oil supplies also played significant roles.
The IPMAN spokesman warned that petrol price volatility could have broader economic consequences because transportation costs directly influence the prices of goods and services.
He nevertheless expressed optimism that the Dangote Refinery’s free transportation initiative for petroleum marketers could help lower distribution costs and eventually moderate pump prices if sustained.
Ukadike disclosed that some trucks transporting products under the initiative had yet to reach their destinations due to poor road conditions, although more marketers were joining the programme.
He also welcomed the expansion of the initiative to Imo and Anambra states, describing the two states as key gateway markets in the South-East.
According to him, greater access to locally refined petroleum products would encourage competition while reducing the transportation expenses and capital tied up in depots by marketers.
On the continued importation of petrol by some major marketers despite rising domestic refining capacity, Ukadike said imports could support deregulation and competition but questioned the justification for importing products at prices higher than locally refined petrol.
“When the products that are being imported are higher than the ones Dangote is giving us, what is the essence of importing it, putting pressure on our dollar?” he asked.
He called for increased government support for domestic refineries, particularly by improving access to crude oil. He said stronger local refining capacity would boost competition, reduce dependence on imports and potentially enable Nigeria to become an exporter of refined petroleum products.
