The Dangote Petroleum Refinery has announced an increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. The price adjustment is in response to rising crude oil prices in the global market....Read Full Article >>➤
New Pricing Details
The new pricing structure, released in a statement on Friday, outlines the following:
- For bulk purchases of 2 million to 4.99 million litres: ₦955 per litre.
- For bulk purchases of 5 million litres or more: ₦950 per litre.
- Effective date and time: The new rates will take effect from 5:30 PM today.
This change represents a 6.17% increase from the discounted rate of ₦899.50 per litre offered during December 2024.
Reasons for the Price Increase
- The refinery attributed the price hike to rising global crude oil prices.
- On Thursday, the price of crude oil, including Nigeria’s Bonny Light, rose by 5.1%, reaching $82 per barrel, up from $78 per barrel.
Market Reactions and Observations
- Rush to Buy Petrol: Many motorists and buyers hurried to purchase fuel at filling stations in Lagos and surrounding areas before the new prices took effect.
- Filling Stations Adjusting Prices: Some stations preemptively increased their pump prices.
Insights from Government and Industry Experts
Government’s Stance:
- Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, emphasized that petrol prices will fluctuate based on international crude oil prices.
- The downstream sector has been fully deregulated, meaning the government no longer sets fuel prices.
- The focus is now on:
- Quality control: Ensuring petrol is of good quality.
- Availability: Maintaining consistent supply.
- Quantity accuracy: Preventing shortchanging at filling stations.
Lokpobiri highlighted that competition among marketers gives consumers more choices and reduces queues at stations.
Industry Perspective:
- Huub Stockman, Chairman of the Major Energy Marketers Association of Nigeria (MEMAN), noted that while crude oil prices influence petrol prices, the effects are not always immediate due to the complexity of refining processes.
Implications of the Price Increase
For Consumers:
- Higher fuel costs could increase transportation and overall living expenses.
- Many Nigerians are concerned about the possibility of pump prices exceeding ₦1,000 per litre.
For the Economy:
- The deregulated market creates opportunities for competition but demands strict regulation to prevent exploitation.
- Rising global oil prices could pressure local refineries to keep pace with international trends.
Conclusion
The Dangote Refinery’s price adjustment reflects the realities of a deregulated petroleum market. With crude oil prices continuing to fluctuate, Nigerians should expect corresponding changes in fuel costs. Authorities and industry stakeholders must ensure transparency and fair practices to safeguard consumer interests.
For further updates, stay informed through trusted sources. ...Read Full Article >>➤
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