Petrol marketers have expressed concern over the rising cost of Premium Motor Spirit (petrol), saying the price of the commodity has climbed to between N1,250 and N1,300 per litre in some locations following the latest increase by Dangote Petroleum Refinery.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the development was making it increasingly difficult for marketers to plan their businesses amid volatility in the international oil market, government policies and exchange rate movements.
The Dangote refinery had on Wednesday increased its gantry price of PMS by N15 per litre, from N1,185 to N1,200, effective August 26, 2026. The latest adjustment came barely five days after the refinery raised its petrol price from N1,165 to N1,185 per litre.
Reacting to the development, Ukadike acknowledged that the latest increase was coming at a time when international crude oil prices were declining. He said marketers were contending with several factors that continued to create uncertainty in the downstream oil market.
“We are facing the challenges of the volatility in the market. There are policies of the government, policies of the international market, and the exchange rate. These are inherent dispositions to the increase in pump prices. We are not refiners to be able to determine the price of petroleum products,” he stated.
Ukadike, however, said Dangote had previously responded to international market movements by reducing its prices. “But I also believe that Dangote has been consistent in terms of reducing its price in line with the international market rate. With this situation now, we cannot, at this particular point in time, structure our business. It’s going to be too difficult for us to structure our business,” he noted.
The latest increase came amid heightened volatility in the international oil market, with crude prices falling on Tuesday as investors assessed expanded United States sanctions against Iran and the potential impact on global supplies.
Reuters reported that oil prices dropped about four per cent on Tuesday, with Brent crude falling to $88.43 per barrel and West Texas Intermediate dropping to $81.67 per barrel. The market reaction followed the latest US sanctions against Iran, although analysts warned that prices could rebound if the conflict escalates and threatens supplies through the Strait of Hormuz.
Ukadike said the continuing tension between Iran and the United States could further contribute to price irregularities in Nigeria. “But I want to thank God for his infinite mercies that we are still pushing. The more the Iran and the United States crisis continues to persist, the more we’ll be having these irregularities in price.”
He added that independent marketers were also being affected by fluctuations in crude prices and other financial factors. “Also, bear in mind that the price of crude oil is determined by the international market. So, for all the independent marketers, we will continue to strive.
“Prices have been fluctuating, and we are still loading. PMS is now close to N1,290, N1,300 or N1,250. So, the price of petrol will continue to be volatile as long as the price of crude is not stable and other factors relating to the financial situation,” he added.
The IPMAN official said the impact of the price increases was ultimately being felt by marketers and consumers, saying, “Independent marketers and Nigerians are the ones bearing the brunt of these rises and fluctuations, because whatever happens will get to the pump price, which will continue to affect inflation in the country.”
The latest Dangote adjustment means the refinery has increased its PMS gantry price by N35 per litre in less than a week, from N1,165 to N1,200. The price movement is expected to continue to influence retail petrol prices as marketers factor in the cost of products, transportation, depot charges and other operating expenses.
Dangote Petroleum Refinery, with a nameplate capacity of 700,000 barrels per day, remains a major source of petrol supply to the Nigerian downstream market. Its pricing adjustments have therefore continued to attract close attention from marketers and consumers.
Other dealers with the Petroleum Products Retail Outlets Owners Association of Nigeria had also expressed concern over the volatility in the prices of refined products, as they stressed that this does not only affect the end consumers, but also distort businesses in the midstream.
They pointed out that price fluctuations often lead to losses to oil marketers, noting that as consumers groan over the hike in petrol prices, dealers also face mounting losses due to the upswing in the cost of refined products, occasioned by the galloping prices of crude in the global market.
