Dangote Refinery Announces Significant Petrol Price Increase, Mandates Additional N100 Per Litre Payment
In a major development affecting Nigeria's downstream petroleum sector, Dangote Petroleum Refinery has implemented a substantial price adjustment for Premium Motor Spirit, commonly known as petrol. The refinery has raised its ex-depot price to N799 per litre, representing a significant increase that has created immediate ripple effects across the fuel supply chain.
Marketers Face Confusion as Loading Authorisations Are Cancelled
Petroleum marketers who had previously completed payments and secured loading authorisations at the previous rate of N699 per litre now face unexpected financial obligations. The refinery has directed these marketers to pay an additional N100 per litre before they can proceed with product loading, effectively requiring them to top up their payments to match the new pricing structure.
The situation has created considerable confusion and tension at the refinery's gantry, as the facility has invalidated all previously issued loading approvals. According to official communications from the refinery's Group Commercial Operations Department, the earlier pricing represented a temporary intervention during the festive season that could no longer be sustained.
"With the festive period concluded, PMS prices have been modestly realigned to sustainable levels. Under the current alignment, our PMS gantry price is N799 per litre," the refinery stated in its notice to customers.
Operational Challenges and Market Impact
Industry sources indicate that the pricing adjustment comes amid ongoing operational constraints at the massive 650,000-barrel-per-day refinery. Persistent technical issues related to the Residual Fluid Catalytic Cracking unit have reportedly kept the facility operating below its full capacity, with these challenges potentially extending into the first half of 2026 if unresolved.
These operational difficulties have complicated the refinery's ability to consistently meet domestic fuel demand while maintaining price stability, despite its growing dominance in Nigeria's local fuel supply market.
Retail Price Surge in Abuja
The impact of the ex-depot price increase was almost immediately felt at retail outlets across Nigeria, with particularly dramatic effects in the nation's capital. Within hours of the refinery's announcement, pump prices in Abuja surged to as high as N910 per litre at some stations.
Market checks revealed that Optima Energy stations at the EFCC Junction and near Dunamis Church increased their prices from N815 to N910 per litre. An AP station at Airport Junction began selling petrol at approximately N899 per litre, up from N815. Other stations adjusted their prices within the N800 to N850 range, with Conoil outlets along Airport Road selling at around N800 per litre and Matrix stations increasing prices to N850.
Dangote's Growing Influence on Nigeria's Fuel Market
The swift response by retailers highlights the increasing sensitivity of pump prices to movements at Dangote Refinery's gantry. As Africa's largest single-train refinery and a major supplier of locally refined petrol, Dangote now plays a central role in shaping pricing dynamics in Nigeria's deregulated downstream petroleum market.
While the refinery has significantly reduced Nigeria's dependence on fuel imports, its pricing decisions now transmit almost instantly to consumers, underscoring its expanding influence across the entire petroleum sector. The facility's market position means that its operational decisions and pricing strategies have immediate consequences for both marketers and end consumers throughout the country.
Related Price Adjustments by NNPC
In a related development, the Nigerian National Petroleum Company Limited has increased petrol prices across its retail outlets in Lagos and Abuja. According to recent checks, petrol now sells for N835 per litre in Lagos and N839 per litre in Abuja at NNPC filling stations.
This adjustment represents a N50 increase in Lagos, up from N785 per litre, while prices in Abuja rose by N20 per litre. The increase was implemented across several NNPC retail outlets in both cities, adding to the financial pressure on consumers already grappling with rising living costs.
The combined effect of these price adjustments by both Dangote Refinery and NNPC signals a challenging period ahead for Nigeria's petroleum consumers, with market dynamics continuing to evolve as the country's refining capacity expands and matures.
