Dangote Refinery raises petrol price, halts sales over process disruption

The Dangote Refinery has increased the ex-depot price of Premium Motor Spirit (PMS) by N75 per litre, while also suspending product sales following a disruption in its Proforma Invoice process.

Data from Petroleumprice.ng and confirmation from a refinery official on Wednesday showed that the petrol loading price rose from N1,200 per litre to N1,275 per litre. Coastal supply prices were also adjusted upward to N1,215 per litre.

The adjustment, linked to operational changes, has begun to impact the downstream petroleum market.

Confirming the development, a refinery official said, “Yes, the increase to N1,275 per litre is correct. Coastal price is now N1,215.”

A separate source familiar with the situation disclosed that the refinery halted its Proforma Invoice entry process around 4:00 pm on Tuesday, disrupting normal supply scheduling within its loading system. The disruption reportedly led to an immediate suspension of both petrol and Automotive Gas Oil (diesel) sales.

The development has triggered concern among traders and marketers, many of whom are bracing for higher depot prices and a likely increase in pump prices across the country.

Industry operators noted that such disruptions typically raise logistics and distribution costs, putting additional strain on the supply chain.

The price hike also comes amid rising global crude oil prices, which continue to push up feedstock costs for refiners.

As of 10:35 am (WAT), Brent crude was trading at $114.80 per barrel, up 3.15 per cent, while West Texas Intermediate stood at $103.40 per barrel, a 3.49 per cent increase.

The surge in global oil prices has been attributed to tensions around the Strait of Hormuz, a critical route for global oil supply, further driving up the cost of refined petroleum products.