Dangote Refinery Announces Significant Fuel Price Hike to ₦1,245 per Litre
In a move that will impact millions of Nigerians, Dangote Refinery has implemented a substantial increase in the price of Premium Motor Spirit (PMS), commonly known as petrol. The refinery has raised its gantry price to ₦1,245 per litre, marking a ₦70 increase from the previous price of ₦1,175. This adjustment reflects the ongoing challenges in the global oil market and signals potential further increases at pump stations across the country.
Global Oil Crisis Drives Price Surge
The price hike comes against the backdrop of a severe global crude oil shortage, with prices soaring to approximately $119 per barrel. Nigeria's petroleum sector has been significantly affected by the international oil crisis, which stems from escalating military conflicts in the Middle East. The ongoing confrontation between the United States, Israel, and Iran has disrupted oil production and supply chains in a region responsible for nearly 30% of global oil consumption.
This latest price increase represents the highest fuel cost since the conflict began, following a series of adjustments over the past month. Dangote Refinery initially raised prices from ₦774 to ₦874 per litre, then to ₦1,075, and subsequently to ₦1,175 before this latest jump to ₦1,245. The refinery briefly reduced prices to ₦1,075 before quickly reverting to ₦1,175 just days prior to this announcement.
Middle East Tensions Escalate Fuel Concerns
The persisting crisis in the Middle East shows no signs of immediate resolution, potentially leading to further crude oil price increases in coming weeks. On March 19, Arab states convened in Riyadh, Saudi Arabia, demanding that Iran cease all regional attacks. However, their appeals proved ineffective when Iran bombed Kuwait's largest oil refinery the following day, exacerbating supply disruptions.
Dangote Refinery has demonstrated responsiveness to global crude oil market fluctuations, regularly adjusting its product pricing accordingly. As Africa's largest refinery with a daily production capacity of 600,000 barrels, the facility plays a crucial role in Nigeria's petroleum landscape. The refinery currently supplies a significant portion of Nigeria's daily fuel consumption, which has led the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to refrain from issuing new oil importation licenses since 2025.
Production Challenges and Market Implications
In official statements addressing previous price increases, Dangote Refinery has attributed adjustments to rising global crude oil sourcing costs. The facility faces production challenges as the Nigerian National Petroleum Corporation Limited struggles to meet its crude oil demands, forcing the refinery to import substantial quantities from international markets at premium prices.
With Dangote Refinery's gantry price now at ₦1,245 per litre, consumers should anticipate corresponding increases at retail pumps, potentially reaching nearly ₦1,500 per litre. This development places additional financial pressure on Nigerian households and businesses already grappling with economic challenges, while highlighting the country's vulnerability to global energy market volatility.
