Dangote Refinery Increases Petrol Price to N874 per Litre Amid Global Crude Oil Surge
Nigeria's Dangote Petroleum Refinery has announced a significant increase in the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, raising it by N100 from N774 to N874 per litre. This move is expected to potentially trigger fresh adjustments in fuel prices across the nation, impacting consumers and the downstream sector.
Official Confirmation and Reasons for Price Review
A senior refinery official confirmed the price review, attributing the change to rising global crude oil costs and higher replacement expenses. "Yes, the price has been reviewed. The new gantry price is now N874 per litre, up from N774. The revision became necessary due to changes in global crude fundamentals and replacement costs," the official stated. This adjustment comes as international crude prices have climbed above $80 per barrel, creating economic pressures that necessitated the price hike.
Operational Impacts and Market Signals
In response to the global market conditions, the refinery temporarily suspended petrol loading operations from midnight on March 2, 2026. This suspension affected petrol supply and the issuance of proforma invoices, although diesel production and loading continued without any disruption. The price change is already reflected on local fuel pricing monitoring platforms, signaling possible downstream market adjustments that could push retail petrol prices higher across Nigeria.
Effects on Nigeria's Downstream Sector
The development has begun to affect Nigeria's downstream sector, with some private depot operators reportedly halting petrol sales during trading hours as they await clearer pricing signals. This cautious approach highlights the uncertainty and potential ripple effects of the price increase on the broader fuel distribution network.
Ongoing Legal Proceedings
Meanwhile, legal proceedings between Dangote Refinery and the Nigerian National Petroleum Company Limited, along with other parties, over a ₦100 billion lawsuit have been adjourned to November 5, 2026. The dispute continues in court, focusing on industry and regulatory matters that add another layer of complexity to the refinery's operations and market dynamics.
This price adjustment underscores the interconnectedness of global oil markets and local economies, with potential implications for inflation, transportation costs, and daily life in Nigeria. Stakeholders are closely monitoring the situation for further developments.
