Dangote Refinery Returns to Full Capacity, Petrol Price Hits N877
The average price of Premium Motor Spirit (PMS), also known as gasoline, has increased by 7%, from ₦820 to ₦877 per litre, after the Dangote Petroleum Refinery has fully reopened.
Market research, according to Vanguard, indicated that oil marketers buying two million liters or more will continue to benefit from a comparatively lower price than depot owners.
Even with the rise, the refinery’s price is still less than what many private depots now charge, which is between ₦890 and ₦900 a litre.
Petroleumprice.ng reported on Thursday that key depot operators, including Rainoil and Pinnacle, set their prices at ₦885 and ₦890 per liter, respectively.
The depot pricing for Optima and Matrix were also changed to ₦880 and ₦890 per liter, respectively.
According to Olatide Jeremiah, the CEO of Petroleumprice.ng, Dangote’s enormous capacity still affects market patterns.
“The price battle in the downstream sector is still going on. The 650,000 barrels per day refinery continues to set the pace due to its enormous size and capability. Others, including depot owners, must comply. Therefore, we anticipate a decrease in depot costs during the next few weeks. Additionally, we hope that the anticipated decreased prices will be applied to gas stations around the country,” Jeremiah stated.
In response to the news, Mazi Obasi, President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), praised the refinery’s management for continuing to operate in spite of obstacles.
“The Dangote Refinery’s management and employees deserve praise for the oil and gas value chain’s successful start-up and for their perseverance in overcoming numerous operational and financial obstacles presented by saboteurs,” he said.
Obasi also emphasized that OGSPAN would keep supporting public advocacy on the advantages of local refining, saying the refinery marks a significant milestone in Nigeria’s quest for economic stability and energy independence.
“This project is revolutionary for national energy security, job creation, and foreign exchange stability,” he stated.