Petrol marketers sourcing fuel from Dangote Petroleum Refinery have begun retailing Premium Motor Spirit at N1,125 per litre, a figure N48 above the refinery's naira-equivalent gantry price of roughly N1,077 per litre. The gap emerged after the refinery switched to dollar-denominated transactions, requiring marketers to pay in US dollars rather than naira.
Price Divergence After Dollar Switch
The refinery's official dollar-denominated gantry price remains at $0.779 per litre, which at the prevailing exchange rate translates to approximately N1,077 per litre. However, marketers connected to the facility have set their selling price higher, absorbing and passing on costs that were not a factor under the previous pricing arrangement. According to Petroleumprice.ng, the price difference represents the first notable divergence since Dangote Refinery began requiring marketers to settle payments in US dollars.
Under the earlier model, retail prices tracked the refinery's ex-depot rate far more closely. Industry analysts warned that consumers could bear the brunt if the trend spreads further across Nigeria's downstream petroleum market.
Why Marketers Are Charging More
Industry stakeholders attributed the N48 premium to the additional financial burden the new dollar-based payment framework places on marketers. Beyond the base cost of the product, marketers are now factoring foreign exchange procurement costs, financing charges, and broader operational expenses into their pump prices. The refinery's official dollar price has not changed, but the cost of accessing those dollars within Nigeria's currency environment has added pressure on margins.
The policy shift has also rippled through private depot operations, with loading prices for both petrol and diesel adjusting upward at several facilities across the country since the dollar-denominated model came into effect.
Broader Market Pressures
The pricing adjustments are unfolding against a backdrop of renewed turbulence in global crude markets, driven in part by fresh geopolitical tensions between the United States and Iran. Higher international crude prices, alongside persistent exchange rate volatility, continue to influence what Nigerians pay for refined petroleum products.
Analysts noted that the spread between the refinery's official price and what marketers charge at the point of sale is a signal that the structural effects of the new payment model are already working their way through the downstream sector. Market participants are watching developments closely, anticipating further pricing movement as marketers adjust their operations to the refinery's new commercial terms and gauge the policy's longer-term effect on nationwide pump prices.
10 States with Highest, Lowest Petrol Prices in Nigeria
Earlier, the National Bureau of Statistics (NBS) revealed that the average retail price paid by consumers for Premium Motor Spirit (PMS) stood at N1,288.54 in March 2026. This represents a 2.13% increase compared with N1,261.65 recorded in March 2025. On a month-on-month basis, the average retail price rose by 22.55% from N1,051.47 in February 2026.
On a state-level analysis, Anambra State recorded the highest average retail price for petrol at N1,441.22, followed by Sokoto (N1,377.55) and Borno (N1,375.16).
