Dangote Refinery has reversed its earlier petrol price increase, bringing its ex-depot rate for Premium Motor Spirit back to N1,275 per litre, just hours after announcing a higher price to marketers.
The reversal comes after the refinery had earlier on Wednesday effected an upward adjustment to N1,350 per litre, triggering immediate reactions across the downstream market before the decision was rolled back.
A senior official of Dangote Refinery, who pleaded anonymity, confirmed the earlier price increase but said the refinery has now reversed it.
He explained that the decision was taken quickly in response to changing market conditions, especially the sharp drop in global crude oil prices.
“The earlier adjustment has been reversed. We have returned the gantry price to N1,275 per litre,” the official said.
Data showed that crude benchmarks dropped sharply on Wednesday morning, with Brent crude falling to $101.7 per barrel, while West Texas Intermediate traded at $94.11 per barrel, representing declines of 7.48 per cent and 7.98 per cent respectively.
However, despite the downward adjustment at the depot level, checks by our correspondent showed that several filling stations have already increased their pump prices to as high as N1,400 per litre in Lagos, reflecting the lag between depot pricing and retail adjustments.
The price increase comes barely a week after Dangote Refinery raised its ex-depot price from N1,200 to N1,275 per litre, highlighting the rapid pace of adjustments in the downstream market and the refinery’s growing influence on domestic fuel pricing.
It is also the second N75 increase within seven days.
Within the past month, Dangote Refinery has adjusted its petrol prices multiple times, reflecting changes in crude sourcing costs, foreign exchange pressures, and domestic distribution dynamics.
The hike underscores a broader trend of sustained price volatility linked to the refinery’s evolving pricing strategy since it began dominating local supply.
It had earlier reduced prices slightly in response to competition and inventory build-up, only to reverse course as supply tightened and global oil prices firmed.
The frequent price movements signal a transition phase in Nigeria’s deregulated fuel market, where domestic refining is beginning to replace imports but is still exposed to international cost variables.
The increase is expected to cascade into higher pump prices across the country, as marketers pass on the additional costs to consumers already grappling with inflation and high transportation expenses.
For motorists, however, the immediate impact remains unchanged, as pump prices continue to trend upward despite the temporary relief at the depot level.