Dangote Refinery Restores Petrol Price to N1,175 per Litre, Depot Owners Suspend Sales
The Dangote Petroleum Refinery has reinstated the ex-depot price of Premium Motor Spirit, commonly known as petrol, to N1,175 per litre. This decision has prompted depot operators across multiple locations in Nigeria to temporarily halt product sales in order to prevent potential financial losses. The price adjustment represents a reversal from a recent reduction implemented earlier in the week, creating significant uncertainty within the downstream petroleum sector.
Price Volatility and Market Response
On March 10, 2026, the refinery had reduced the ex-depot price of petrol by N100, bringing it down to N1,075 per litre from the previous N1,175 per litre. Following this reduction, depot owners reportedly began selling the product at an average price of approximately N1,100 per litre. However, the refinery's decision to restore the price to N1,175 per litre has forced several depot operators to suspend sales to avoid losses associated with inventory acquired at lower replacement costs.
Industry sources indicate that product loading activities at the refinery were temporarily paused to allow for stock reconciliation and ensure alignment with the newly adjusted pricing structure. This operational pause reflects the immediate impact of the price change on distribution logistics within Nigeria's petroleum supply chain.
Global Crude Oil Prices Drive Adjustment
A source within the refinery explained that the upward price revision was primarily influenced by developments in the global oil market. The price of Brent Crude reportedly increased from about $91 per barrel to $100 per barrel, significantly raising refining costs. Despite being located in Nigeria, the refinery sources crude at prices linked to international benchmarks, meaning fluctuations in global crude oil markets directly affect its operational expenses.
This connection to international markets means that even as the refinery operates at full capacity, petrol prices may not necessarily decline due to volatility in global oil markets and rising supply chain costs, according to David Bird, managing director and chief executive officer of Dangote Refinery.
Market Uncertainty and Distribution Activities
The frequent price adjustments have introduced considerable uncertainty within Nigeria's downstream petroleum market. Marketers and consumers closely monitor ex-depot pricing because changes at this level often influence pump prices at filling stations across the country. Industry observers suggest that further adjustments could occur depending on movements in the global crude oil market.
Meanwhile, the Dangote refinery has commenced petrol supply distribution to ten depots, including Bovas and AYM Shafa. Fresh vessel activities were reported between March 7 and March 11, featuring multiple tankers carrying petrol, Jet A1, and Automotive Gas Oil across Lagos, Port Harcourt, and Warri distribution corridors. Tanker movements across Lekki, Apapa, Ibafon, and Warri jetties indicate that fuel deliveries to depots are continuing through marine transport, with some shipments loaded directly at the Dangote Refinery in Lekki.
Broader Implications for Nigeria's Energy Sector
The refinery's growing role in distributing refined fuel across Nigeria highlights its increasing importance in the national energy landscape. However, the recent price volatility underscores the challenges facing both operators and consumers in a market sensitive to international crude oil fluctuations. As depot owners navigate these pricing changes, the temporary sales suspension reflects broader concerns about inventory management and financial stability within the petroleum distribution network.
Market participants will continue to watch ex-depot pricing closely, as any further adjustments could have ripple effects throughout Nigeria's petroleum supply chain, ultimately impacting consumers at the pump. The situation demonstrates how global economic factors directly influence domestic energy prices, even with increased local refining capacity.
