In a significant development that could reverberate across the nation, Dangote Refinery has announced a hike in the ex-depot price of petrol. The refinery, regarded as a game-changer in Nigeria’s energy sector, shared the news through its official X (formerly Twitter) handle, confirming the price adjustment.
According to the announcement, marketers purchasing petrol in bulk quantities ranging from 2 million to 4.99 million litres will now pay N955 per litre, marking an increase from the previous rate of N899.50 per litre.
The announcement has sparked immediate reactions, with stakeholders in the downstream sector expressing concerns about the ripple effects this price hike might have on retail prices, transportation costs, and the already strained household budgets of Nigerians.
The decision comes amidst rising global crude oil prices and the fluctuating value of the naira, which have significantly impacted the cost of fuel production and distribution in Nigeria. Dangote Refinery, touted as Africa’s largest oil refinery, has consistently positioned itself as a vital player in addressing Nigeria’s reliance on imported fuel. However, this price adjustment may challenge the affordability narrative that Nigerians had pinned their hopes on.
Market analysts are speculating that the increase could trigger a corresponding surge in pump prices nationwide. This development is expected to further exacerbate the hardship already faced by citizens grappling with inflation and the removal of fuel subsidies.
Consumer advocacy groups have called on the government to intervene, urging Dangote Refinery and other stakeholders to explore strategies that balance profitability with affordability for the masses.
While no official statement has been issued on the reason behind the price hike, experts suggest it may be influenced by rising operational costs and the global energy market’s volatility.
As Nigerians brace for the potential economic impact, all eyes are now on the government and regulatory bodies to provide a framework that addresses these challenges while ensuring stability in the energy sector.
This latest development adds another layer to the unfolding narrative of Nigeria’s energy transition, leaving many to wonder how it will shape the nation’s economic future.
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