Naira-for-Crude Suspension: Petrol Price Hike Looms as Talks Drag, Imports Rise

• The price of Premium Motor Spirit (petrol) may rise further due to the increase in the landing cost of imported PMS.

• Also the suspension of the naira-for-crude deal between the Dangote refinery and the Federal Government.

The price of Premium Motor Spirit (petrol) may rise further due to the increase in the landing cost of imported PMS and the suspension of the naira-for-crude deal between the Dangote refinery and the Federal Government.

The landing cost of imported petrol has increased by N88 in one week, rising from N797 per litre to N885 per litre, which may reflect on the pump prices of the commodity in the coming days.

According to data obtained by the Major Energies Marketers Association of Nigeria, the landing cost of a litre of imported petrol increased by N88 in one week.

The Dangote refinery’s ex-depot petrol price is N815 per litre, N70 lower than the new landing cost. There are indications that this imported petrol may hit N1,000 per litre at filling stations after adding charges and the margins.

READ ALSO: ActionAid Questions Naira-for-Crude Oil Suspension, Demands Answers from FG

The Dangote refinery’s suspension of the sale of petroleum products in naira has led to a rise in the cost of loading petrol at private depots, with depot owners profiteering from the situation.

The National Publicity Secretary of IPMAN, Chinedu Ukadike, said depot owners were raising their prices to make more profits.

“The demand for PMS has risen since when Dangote made the announcement. As a result, depot owners are raising their prices to make more profits,” he said.

Dangote Refinery Suspends Sale of Petrol in Naira

Dangote Refinery has finally announced the suspension of sale of its Petroleum products in Naira. This comes amid the alleged ban of Crude oil Supply in Naira by the Nigerian National Petroleum Company Limited to Dangote.

In an official statement released, the Dangote refinery made this known to its customers stating that the suspension of Naira to crude oil purchased is temporary till further notice as it galvanize it’s pricing system to be in line with the measure modelled by NNPCL.

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