The Dangote Petroleum Refinery has increased its ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, to N880 per litre, marking a N55 hike from the previous rate of N825 per litre.
Confirming the development on Saturday, Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated:
“We are aware that the refinery has reviewed the price to N880 per litre. Our members have been informed.”
This price adjustment comes just days after the refinery announced the rollout of nationwide logistics services for petrol and diesel distribution — a move it said is aimed at improving the availability and affordability of fuel across the country.
As part of its logistics expansion, the Dangote Group disclosed it had acquired 4,000 new compressed natural gas (CNG)-powered tankers, significantly enhancing its capacity to distribute petroleum products across Nigeria.
In a statement, the refinery said: “It affirms our dedication to improving the availability and affordability of fuel, in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians.”
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However, the move has raised alarm within the downstream sector. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) cautioned that Dangote’s vertically integrated operations could evolve into a monopolistic structure, potentially squeezing out smaller marketers and leading to widespread job losses.
Echoing similar concerns, the Major Energies Marketers Association of Nigeria (MEMAN) on June 19 requested clearer details on Dangote’s nationwide logistics plan, emphasizing the need for a level playing field in the fuel distribution landscape.
While some industry analysts hailed the refinery’s expansion strategy as a potential game-changer that could reduce product scarcity and enhance efficiency, others warned of long-term competitive risks, especially for independent marketers and smaller operators in the downstream segment.
The latest price adjustment underscores the refinery’s growing influence in Nigeria’s petroleum market, amid hopes and fears of its evolving role as both producer and distributor of fuel products.