The Digest:
Dangote Petroleum Refinery has announced an increase in the gantry price of Premium Motor Spirit (PMS) from ₦699 to ₦799 per litre. This adjustment marks the end of a temporary festive price support initiative, leading MRS Oil Nigeria Plc retail outlets to now sell petrol at ₦839 per litre nationwide. The refinery's CEO, David Bird, stated the increase is necessary for market sustainability, noting that many filling stations did not pass on the earlier reduced price to consumers. He confirmed the refinery continues to supply about 50 million litres of PMS daily to the domestic market.
Key Points:
- The price increase ends a short-lived subsidy-like intervention by a private refinery, directly impacting consumer costs at the pump.
- It highlights the significant influence of the Dangote Refinery on national fuel pricing and market dynamics as a major domestic supplier.
- The refinery accuses some retailers of profiteering by not reducing pump prices during the festive support period, undermining the intervention's goal.
- The move is framed as essential for the long-term stability and operational sustainability of the downstream sector.
- It reaffirms the refinery's role in insulating the domestic market from international price volatility and supply disruptions.
Sources: Daily Trust, Vanguard
