The Dangote Petroleum Refinery has intensified distribution of petrol (PMS) using Compressed Natural Gas (CNG)-powered trucks, selling at ₦850 per litre. This move aims to ease supply across Nigeria as depot and retail prices continue to surge, with the NNPC Limited raising its depot rate to ₦900 per litre.
Dangote Refinery Drives Nationwide Fuel Supply with CNG Trucks
Checks revealed that the use of CNG-powered trucks has enabled the 650,000 barrels per day Dangote Refinery to maintain fuel distribution nationwide. The strategy is designed to cut transport costs and ensure steady petrol delivery despite rising depot prices.
However, recent data showed that depot prices for petrol have climbed between ₦870 and ₦900 per litre, signaling another round of increases in the downstream market.
Depot Prices Surge Across Lagos and Calabar
According to Petroleumprice.ng Chief Executive Officer, Olatide Jeremiah, “Generally, the depot prices have increased. Market data showed that petrol sold between ₦870 and ₦900 per litre at key depots in Lagos and Calabar, reflecting a steady climb over the past week.”
He explained that in Lagos, depots such as Aiteo and Pinnacle sold petrol at ₦890 and ₦870 per litre, while Integrated Oil and Gas priced it at ₦870 per litre.
In Calabar, Matrix Energy and Northwest Petroleum traded at ₦890 and ₦880 per litre, while Sobaz Depot hit ₦900 per litre, marking the month’s highest price so far.
Jeremiah added, “The hike in depot prices would likely crash once the Dangote Petroleum Refinery completes its rehabilitation because the plant has the capacity to impact the domestic market.”
Retail Pump Prices Hit ₦955 per Litre in Major Cities
Despite Dangote’s intervention, retail petrol prices have jumped by 6.8 percent, rising from ₦890 to ₦955 per litre within a week.
In Lagos and Abuja, stations owned by the NNPC Limited and independent marketers sold petrol between ₦900 and ₦955 per litre, depending on location and supplier.
Petrol marketers across Abuja also adjusted their prices upward following NNPC’s new depot rate. Adova Plc raised its pump price from ₦899 to ₦945 per litre, while AYM Shafa increased from ₦910 to ₦955 per litre. Independent outlets like RYBN Station on Nyanya-Karshi Road dispensed fuel at ₦997 per litre, up from ₦920 the previous week.
Motorists Decry Rising Petrol Prices Despite Dangote Supply
Many motorists expressed frustration over the continued fuel hike.
At an AYM station in Karu, a motorist, John Ogaba, lamented the price surge, saying, “The price is getting out of control after hopes that the direct supply by Dangote Refinery would further reduce the price. The stations were selling below ₦900 per litre when Dangote announced it would supply using CNG trucks to reduce logistics costs. Why are we facing an increase in price?”
Nigerians Hope for Relief from Dangote Refinery’s Supply Boost
With Dangote Refinery expanding its CNG-powered fuel distribution network, Nigerians are hopeful the intervention will soon stabilize petrol prices. However, until supply fully meets demand, PMS prices across Nigeria may continue to fluctuate between ₦900 and ₦955 per litre.
