The Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (petrol) at its gantry from N1,185 to N1,200 per litre, effective August 26, 2026. The refinery communicated the adjustment in a notice sent to customers on Tuesday, August 25, through its Group Commercial Operations department.
Revised Prices for Gantry and Coastal Deliveries
The price revision affects both gantry and coastal delivery options. The coastal price has also been raised from N1,562,265 to N1,582,380 per metric tonne. Customers were instructed to return their existing Authorisation to Collect (ATC) documents for repricing before loading resumes.
The refinery stated: “You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption.” This directive means that all outstanding ATCs must be revalidated under the new pricing structure before any product can be lifted.
Impact on Pump Prices and Downstream Costs
The latest adjustment represents a N15 per litre increase and comes only days after Dangote raised the gantry price from N1,165 to N1,185 per litre on August 21. The cumulative effect within a week is a N35 per litre rise, reflecting the refinery's response to market conditions.
The increase could push petrol pump prices higher as marketers account for transportation and other downstream costs. According to the report, petrol could return to an average of around N1,250 per litre at retail outlets. This would mark a significant shift for consumers who have benefitted from relatively stable prices in recent months.
Crude Oil Market Volatility and Geopolitical Tensions
The hike comes despite recent declines in international crude oil prices. On Tuesday, West Texas Intermediate was reported at $82.13 per barrel, while Brent crude stood at $88.37 per barrel. The international oil market has remained volatile amid the ongoing US-Iran conflict, with concerns over possible disruptions to crude supplies.
Reuters reported that oil prices had fallen after investors viewed new US sanctions against Iran as less threatening to global supplies than a potential military escalation. However, analysts warned that prices could rise sharply if Iran responds militarily, which would likely have a direct impact on global refining costs and, consequently, on Nigerian fuel prices.
Strait of Hormuz Risks and Global Supply Concerns
Another concern is the Strait of Hormuz, a crucial oil-shipping route. Only two commodity vessels reportedly transited the waterway on Monday, the lowest daily figure since early May. The strait handled roughly one-fifth of global oil consumption before the conflict, making any prolonged disruption a major risk to international energy markets.
If the situation in the Strait of Hormuz escalates, it could lead to significant supply shortages and further price spikes. For Nigerian consumers, this means that the current N1,200 per litre gantry price may not be the last adjustment, as the refinery continues to align its pricing with global market realities.
