In a significant development, Dangote Refinery has announced an upward adjustment in the price of Premium Motor Spirit (PMS). Effective from 5:30 PM, the revised pricing reflects increases for different volume categories of petrol lifted from its facilities.
The new gantry price structure is as follows:
- 2 million – 4.99 million litres: ₦955 per litre (previously ₦899.50).
- 5 million litres & above: ₦950 per litre (previously ₦895).
This adjustment applies to all stock balances yet to be lifted by the stated time. Pending stock as of the effective time will also be repriced at the updated rates.
Implications for the Petroleum Sector
The price increase is expected to have widespread effects on the downstream petroleum sector, particularly private depots and retail markets. Analysts predict a sharp rise in petrol prices at filling stations, driven by higher supply costs.
Key impacts include:
- Depot-Level Pricing Adjustments: Private depots are anticipated to adopt the revised rates, creating a ripple effect across the supply chain.
- Consumer Price Increases: Retail petrol prices are likely to surge, straining household budgets and transportation costs.
Stakeholder Concerns
Market watchers have expressed concerns that this price hike may lead to greater precision pricing in the market, potentially intensifying inflationary pressures. While stakeholders adjust to the new realities, the downstream sector is expected to face challenges in balancing supply costs with consumer affordability.
Further updates are expected as operators and marketers align with the new pricing structure. For now, consumers and businesses alike are urged to prepare for potential cost increases as the new rates take effect.
