Nigeria's downstream petroleum sector is witnessing significant price adjustments as Dangote Petroleum Refinery implements new pricing structures for premium motor spirit (PMS), commonly known as petrol. The refinery has officially increased its ex-gantry price from N699 per litre to N799 per litre, marking a substantial N100 increment from the previous rate that had been maintained since mid-December 2025.
Immediate Impact on Retail Stations
This price adjustment is set to directly affect pump prices across various filling stations nationwide. MRS Oil Nigeria Plc, which serves as Dangote Refinery's major retail partner, is expected to adjust its pump prices to approximately N839 per litre at its network of stations throughout the country. This represents a significant increase from the N739 per litre that MRS stations were charging during the recent festive period.
Refinery's Explanation for Price Adjustment
Dangote Refinery has provided detailed reasoning behind this pricing decision through an official statement. The facility explained that it had implemented a deliberate and temporary price support intervention during the festive season to cushion the effect of heightened household spending on Nigerian consumers.
The statement elaborated: "This marked the second consecutive festive season in which the Refinery absorbed significant costs in the national interest, including logistics support in 2024 and a price reduction in 2025 to promote affordability and market calm. Despite the price reduction, many filling stations failed to reflect the new price at the pump, thereby denying Nigerians the benefits of the reduction."
The refinery further clarified that with the festive period concluded, PMS prices have been modestly realigned to sustainable levels to support long-term market stability and affordability. As a domestic producer, Dangote Petroleum Refinery emphasized its continued commitment to shielding the Nigerian market from import-related volatility and external supply disruptions while remaining a stabilizing force in the downstream petroleum sector.
Current Market Observations
Market surveys conducted in Lagos reveal that the price changes had not yet taken full effect at the time of reporting. At NNPC filling stations, petrol continued to sell at N739 per litre, a price that was implemented just recently. Similarly, MRS stations maintained their pump price at N739 per litre, while First Royal outlets also sold petrol at the same rate.
Industry observers anticipate that petrol prices may undergo further adjustments within the next 24 to 48 hours as the market responds to Dangote Refinery's new pricing structure. This development comes shortly after NNPC had reduced petrol prices by N45 per litre from the earlier N785 per litre, creating a dynamic pricing environment in Nigeria's petroleum sector.
Broader Context and Future Plans
The price adjustment occurs against the backdrop of Dangote Refinery's broader strategic initiatives. The refinery had previously announced plans to commence direct-to-customer free petrol distribution, though this launch experienced delays due to logistical challenges in China. This initiative coincides with the one-year anniversary of petrol production at the massive $20 billion facility.
As part of its distribution enhancement strategy, Dangote Refinery plans to deploy more than 1,000 Compressed Natural Gas (CNG)-powered trucks in the initial phase of its direct-to-station distribution scheme. The refinery had ordered 4,000 CNG trucks from China, with approximately 1,000 having arrived by late August and additional shipments expected on a weekly basis.
The petroleum sector continues to navigate these pricing dynamics while balancing market stability, affordability concerns, and long-term energy security objectives for Nigerian consumers and the broader economy.
