- Depot trading disrupted and marketers pause transactions as volatile crude prices push Nigeria’s largest refinery into rapid price reversals.
Nigeria’s downstream petroleum market witnessed another twist today after Dangote Petroleum Refinery raised the ex-depot price of petrol to ₦1,175 per litre, reversing a ₦100 reduction announced earlier in the week.
The latest adjustment has intensified what industry watchers now describe as a “fuel price yo-yo”, reflecting how rapidly changing global oil prices are influencing domestic petrol pricing.
A senior refinery official confirmed that the refinery had briefly reduced its petrol gantry price to ₦1,075 per litre on March 10, triggering heavy buying activity among depot operators before the new increase was announced.
“Yes, it is true,” the official said when contacted about the upward price revision.
Rapid Price Swings Within Days
The latest change means the refinery’s petrol price has fluctuated sharply within a short period:
• ₦995 per litre – earlier benchmark price
• ₦1,075 per litre – temporary reduction announced earlier this week
• ₦1,175 per litre – latest revised price
The rapid adjustments highlight the increasing sensitivity of Nigeria’s deregulated fuel market to global crude oil movements.
Industry analysts say such price swings are becoming more frequent as domestic fuel pricing aligns more closely with international market realities.
Depot Operators Suspend Transactions
Market checks indicated that the latest price reversal triggered confusion across several petroleum distribution hubs.
According to industry sources, depot operators in multiple locations temporarily suspended fuel transactions as they waited for clarity on the revised pricing structure.
The development also affected loading operations at the refinery.
Sources said truck-out activities were briefly halted to allow for stock reconciliation and alignment with the new pricing framework.
Crude Oil Spike Driving the Price Increase
The refinery’s decision was largely attributed to rising global crude oil prices.
Energy market data show that:
• Brent Crude climbed from around $91 to nearly $100 per barrel
• Prices surged amid escalating geopolitical tensions involving the United States, Iran and Israel
Refinery insiders say higher crude prices directly translate to higher refining costs.
“The revision reflects the surge in global crude oil prices,” a refinery source explained. “When crude rises sharply, refining costs increase immediately.”
What It Means for Pump Prices
Industry analysts say the latest adjustment by the Dangote refinery, Africa’s largest refining facility, could trigger fresh pump price increases across Nigeria.
Because the refinery supplies a significant portion of domestic petrol distribution, its pricing decisions often influence depot prices nationwide.
Marketers are therefore expected to adjust retail prices in response to the revised gantry rate.
Impact on Nigeria’s Fuel Market
The rapid price swings illustrate the new reality of Nigeria’s deregulated fuel market, where domestic prices are increasingly tied to global oil trends.
Experts warn that continued volatility in crude oil markets could lead to further fluctuations in petrol prices, affecting transportation costs, inflation and household spending.
For now, motorists and businesses remain on alert as the Dangote refinery’s pricing moves continue to shape the direction of Nigeria’s fuel market.
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