Petrol Nears N1

Author: Gist Correspondent

The pump price of petrol is approaching N1,500 per litre in Abuja following a fresh increase in the gantry price by Dangote Petroleum Refinery and rising global crude oil and logistics costs.

The refinery increased its petrol gantry price by N85, from N1,265 to N1,350 per litre, effective September 12, 2026, representing a 6.7 per cent increase.

The latest adjustment has triggered new pump price increases across the Federal Capital Territory, with some filling stations already selling petrol above N1,400 per litre.

Checks showed that MRS filling stations increased their price from N1,350 to N1,395 per litre, while NIPCO outlets raised theirs to N1,430. Mobil outlets were also selling at about N1,400 per litre.

Industry stakeholders have warned that pump prices could reach N1,500 per litre in Abuja and other major cities if crude oil prices remain elevated and transportation and distribution costs continue to rise.

Brent crude, the global benchmark, was trading above $100 per barrel amid heightened tensions in the Middle East, with prices reaching about $108 per barrel.

Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said the latest petrol price increase was linked to developments in the international oil market.

“Oil price and freight rate spikes are universal challenges for refineries, except where the Federal Government intervenes. Gantry and pump prices will ultimately be determined by the impact of the Middle East crisis,” he said.

Jeremiah said the Dangote Refinery’s decision to raise its gantry price was expected as crude oil prices approached $110 per barrel, warning that petrol could reach N1,500 per litre in major cities if the crisis persisted.

The impact is expected to be particularly significant in Abuja and other inland markets because of their distance from coastal supply centres.

Unlike Lagos, Port Harcourt and Warri, which have relatively closer access to refineries, terminals and other petroleum supply points, Abuja depends heavily on trucking from coastal areas, adding freight, handling and distribution costs to the final pump price.

The latest Energy Bulletin by the Industry Competency Centre, Lagos, put the seven-day average domestic petrol price at N1,308.33 per litre and diesel at N1,855.97 per litre.

The bulletin also recorded seven-day average Brent crude at $98.74 per barrel, Bonny Light at $104.65 and the average exchange rate at N1,323.12 to the dollar.

It further showed that coastal ex-depot petrol prices ranged between N1,265.50 and N1,285 per litre, indicating that inland markets would continue to incur additional transportation and distribution costs.

Industry estimates put petrol prices in Abuja within the N1,400-N1,500 range, with some outlets potentially selling above N1,500 depending on supply costs and marketers’ margins.

Prices in northern cities such as Kano, Kaduna and Jos could rise further, potentially reaching between N1,450 and N1,600 per litre because of transportation distances, supply routes and product availability.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said marketers had been forced to adjust their pump prices following successive increases by the Dangote Refinery.

He said the frequent adjustments were creating uncertainty for both marketers and consumers as replacement costs continued to change.

The latest increase is the fourth upward revision of Dangote Refinery’s petrol gantry price since August 21.

The refinery had raised the price from N1,165 to N1,185 per litre on August 21, then to N1,200 on August 26 and N1,265 on August 29.

With the latest adjustment to N1,350, the gantry price has risen by N185, or about 15.9 per cent, in 22 days.

In a memo to customers, the refinery directed those with existing loading arrangements to return their Automated Truck Certificates for repricing before loading.

It said the revised gantry and coastal prices took effect on September 12, with new volume contracts to be issued for immediate loading.

The latest increase has also raised concerns over its potential impact on inflation, transportation costs and the prices of food and other essential commodities.

Economist and development expert, Aliyu Ilias, warned that higher petrol prices could worsen inflation and deepen economic hardship.

“I think there should be a way of absorbing these costs. If you do not absorb them, they will show up in our next inflation figures and economic analysis,” he said.

Ilias added that rising petrol prices would increase the cost of producing and transporting goods, particularly food, thereby putting additional pressure on households.

Meanwhile, a petrol attendant at an MRS filling station in Abuja, who spoke anonymously, said motorists could face another increase when new supplies arrive.

“We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.