The Dangote Petroleum Refinery’s sudden pause in loading Petroleum Motor Spirit (PMS) has sent shockwaves through Nigeria’s downstream petroleum sector, fueling speculation of an imminent price hike.
The refinery’s ex-depot price may be due for another adjustment, following a recent N100 per litre increase.
According to market sources, loading operations were suspended at about 2:00 a.m. on Friday, after a limited number of trucks were loaded for NNPC Retail outlets on Thursday. This has introduced uncertainty in the market, with depot operators and distributors assessing supply expectations and pricing.
Despite the pause, Dangote Refinery reassures Nigerians of its commitment to energy stability, prioritizing domestic supply and shielding the country from international supply shocks.
A communique made available to Observer states that “the refinery adjusted its PMS price by N100 per litre, absorbing 20% of cost escalation to cushion the market, amidst global market volatility triggered by the Middle East conflict, refinery shutdowns, and export bans.
It says further that the refinery sources crude at international prices, with Nigerian crude costing $3-6 more per barrel than Brent benchmark. It then urges support to address crude supply challenges, noting that its operations reduce exposure to international disruptions, moderate forex demand, and protect Nigeria from severe shortages.
It adds: “The refinery remains committed to transparency and sustainability, accelerating Compressed Natural Gas-powered trucks to enhance distribution and reduce costs”.
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