Dangote Refinery Resumes Petrol Loading After Price Adjustment Disruption
Dangote Petroleum Refinery has officially reopened its gantry for the loading of Premium Motor Spirit (PMS), effectively restoring a crucial supply channel after a temporary suspension caused by a sudden price increase. The reopening comes after intensive reconciliation efforts between the refinery and numerous petrol marketers, many of whom were compelled to make additional payments to align with the revised ex-depot pricing structure.
Immediate Impact of the Price Shock on Operations
The disruption originated from a sharp upward revision of the refinery's ex-depot petrol price, which reportedly increased by approximately ₦100 per litre. This adjustment occurred at a critical juncture, with dozens of trucks already queued at the gantry and several marketers having completed payment documentation at the previous rate but yet to collect their products.
Rather than continue loading PMS at a price that no longer reflected current market conditions, the refinery decided to halt gantry operations around midnight. For a facility renowned for its round-the-clock activity, this pause was highly unusual and immediately created uncertainty within the downstream petroleum market.
From an industry perspective, the stoppage served as a crucial financial control mechanism. By freezing loading activities, the refinery created necessary space to reconcile outstanding volumes, align all payments with the new price structure, and prevent potential losses that could arise from selling below the updated ex-depot rate. Essentially, the gantry closure functioned as a hard reset, compelling all pending transactions to conform to the new pricing framework.
Reconciliation Process and Market Realignment
Following the suspension, Dangote Refinery formally requested affected marketers to reconcile their accounts. This process involved topping up approximately ₦100 per litre on volumes that had already been processed before fresh loading approvals could be granted.
Industry sources familiar with the reconciliation procedure indicated that marketers were required to revalidate their documentation and obtain new loading slips once payments were fully aligned with the revised pricing. Gantry operations then resumed gradually, with priority given to buyers who completed the reconciliation process promptly and efficiently.
By Tuesday, previously idle trucks were back on Nigerian roads, lifting PMS under the new pricing terms. This episode underscores a significant shift in Nigeria's downstream petroleum market dynamics. Unlike the import-driven era, where pricing gaps were often absorbed through credit extensions or regulatory buffers, local refining now operates under strict cash-flow discipline, with products moving only when financial balances are properly aligned.
Nationwide Implications for Petrol Pricing
Even with gantry operations restored, the impact of the price shock has already become visible at filling stations across Nigeria. Retail outlets supplied by Dangote-linked marketers have begun adjusting their pump prices, with PMS now selling in the high ₦800s per litre in numerous locations. In some areas, prices around ₦839 per litre are rapidly emerging as a new market benchmark.
These adjusted prices reflect not only the higher ex-depot rate but also incorporate various additional costs including haulage expenses, dealer margins, financing pressures, and the risk premium associated with abrupt pricing changes. For independent marketers, this incident reveals a growing vulnerability within the market structure. With Dangote Refinery now established as a dominant supplier, even brief operational pauses can significantly tighten supply and strain liquidity across the entire petroleum distribution network.
Transition to a Refinery-Led Downstream Era
At a broader industry level, this episode signals the emergence of a more mature yet challenging downstream environment. As Nigeria increasingly relies on local refining capacity, petrol prices will be shaped more directly by refinery economics, crude oil costs, foreign exchange exposure, and operational efficiency, rather than policy cushions or import arbitrage opportunities.
For Nigerian consumers, this evolving reality means that pump prices will depend less on government intervention and more on how resilient the entire supply chain proves in absorbing sudden market shocks, from the refinery gate all the way to individual filling stations.
Competitive Dynamics in the Petroleum Market
The Nigerian National Petroleum Company Limited, once the undisputed leader in Nigeria's downstream petroleum market, now faces growing challenges in competing on fuel pricing, particularly since Dangote Refinery commenced full operations. Recent market observations indicate that on Monday, a litre of petrol at NNPC retail outlets in Lagos sold for ₦785, making it ₦46 more expensive than prices at MRS filling stations, a key partner of Dangote Refinery.
In the Federal Capital Territory, petrol at NNPC stations was selling for ₦815 per litre, compared with the ₦739 per litre implemented by Dangote's partners across various locations nationwide. This pricing disparity highlights the shifting competitive landscape in Nigeria's petroleum sector as local refining capacity expands and market dynamics evolve.
