Latest news with #DPRP
Business Insider
08-08-2025
- Business
- Business Insider
Dangote breaks from competitive pricing, introducing a higher petrol price
This 3.66% price increase has reignited concerns about a potential nationwide surge in pump prices in the coming days. The increased rate, recorded by industry monitoring portal petroleumpriceng, as seen in the Punch, took effect on Thursday when the 650,000-barrels-per-day facility commenced loading operations. The temporary halt last week created uncertainty in Nigeria's downstream petroleum sector, causing price volatility and disrupting supply chains. An internal document marked "Important Update on DPRP Collection Account for PMS" told marketers to halt all payments to the refinery's gantry account, causing an unanticipated pause in fuel loading. "Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold," the advisory stated, perplexing many in the business until operations resumed this week. While the Dangote Group has not officially addressed the price increase, industry insiders think it is due to global market developments. The refinery is thought to get approximately half of its crude feedstock from the United States, making it vulnerable to global oil price volatility, which might be driving the increase in ex-depot gasoline prices. Recent competition between Dangote and marketers Until recently, the Dangote refinery drove competitive pricing in Nigeria's downstream industry, lowering petroleum costs and compelling competitors to match its offerings. However, a couple of weeks back, Dangote's tactic fell back on him as importers such as Aiteo and Menj offered depot rates as low as N815, causing price swings throughout the market. Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), verified the trend. 'Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,' he said. Additionally, the Dangote Refinery faced more competition as certain filling stations supplied petrol for less than N860 per litre, despite Dangote-linked marketers such as MRS and Heyden maintaining pump rates ranging from N865 to N875 across Lagos and Ogun states. Fuel import surge The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a huge increase in petroleum imports, which adds to the complexity. According to figures filed to the Federation Accounts Allocation Committee (FAAC) for June 2025, imports accounted for 71.38% of Nigeria's daily petroleum consumption in May and June.
Business Insider
08-08-2025
- Business
- Business Insider
Despite intensifying competition, Dangote Refinery increases petrol price
This 3.66% price increase has reignited concerns about a potential nationwide surge in pump prices in the coming days. The increased rate, recorded by industry monitoring portal petroleumpriceng, as seen in the Punch, took effect on Thursday when the 650,000-barrels-per-day facility commenced loading operations. The temporary halt last week created uncertainty in Nigeria's downstream petroleum sector, causing price volatility and disrupting supply chains. An internal document marked "Important Update on DPRP Collection Account for PMS" told marketers to halt all payments to the refinery's gantry account, causing an unanticipated pause in fuel loading. "Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold," the advisory stated, perplexing many in the business until operations resumed this week. While the Dangote Group has not officially addressed the price increase, industry insiders think it is due to global market developments. The refinery is thought to get approximately half of its crude feedstock from the United States, making it vulnerable to global oil price volatility, which might be driving the increase in ex-depot gasoline prices. Recent competition between Dangote and marketers Until recently, the Dangote refinery drove competitive pricing in Nigeria's downstream industry, lowering petroleum costs and compelling competitors to match its offerings. However, a couple of weeks back, Dangote's tactic fell back on him as importers such as Aiteo and Menj offered depot rates as low as N815, causing price swings throughout the market. Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), verified the trend. 'Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820. NNPC is still selling at N825; it has not dropped its prices yet,' he said. Additionally, the Dangote Refinery faced more competition as certain filling stations supplied petrol for less than N860 per litre, despite Dangote-linked marketers such as MRS and Heyden maintaining pump rates ranging from N865 to N875 across Lagos and Ogun states. Fuel import surge The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a huge increase in petroleum imports, which adds to the complexity. According to figures filed to the Federation Accounts Allocation Committee (FAAC) for June 2025, imports accounted for 71.38% of Nigeria's daily petroleum consumption in May and June.
