Nigeria’s fuel market is set for another round of price increases after the Dangote Petroleum Refinery raised its Premium Motor Spirit (PMS) gantry price to N995 per litre, marking a sharp surge in petrol costs within days.
The new price represents an increase of N221 within four days, as the refinery’s petrol price climbed from N774 to N995 per litre.
Industry insiders say the adjustment reflects rising global crude oil prices, higher freight costs, and ongoing tensions in the international energy market.
A senior refinery official confirmed the development, explaining that the price review was necessary due to shifting global oil market fundamentals.
According to the official, the new gantry price replaces the N874 per litre rate introduced earlier in the week after the refinery previously moved its ex-depot price from N774 to N874.
The rapid increase in Dangote refinery petrol prices could soon translate to higher pump prices across Nigeria, with analysts projecting that retail fuel prices may exceed N1,050 per litre in many parts of the country once transportation and marketer margins are added.
The development also followed a temporary halt in petrol loading operations at the refinery.
Sources revealed that truck-out activities were suspended around 2:00 a.m. on Friday, creating uncertainty among depot owners and fuel marketers about the refinery’s next pricing move
Market observers noted that such pauses in loading operations have historically preceded price adjustments at the facility.
In a recent statement, the refinery maintained that petrol prices are not arbitrarily set.
Instead, they are determined by international crude oil prices, logistics costs, foreign exchange rates, and supply dynamics in the deregulated downstream petroleum sector.
The refinery also stated that prioritising domestic fuel supply remains a key strategy to protect Nigeria from global supply disruptions.
Rising geopolitical tensions, including the ongoing US-Iran conflict, have pushed global crude prices higher.
Benchmark Brent crude recently climbed to above $84 per barrel, representing an increase of about 26 percent in a short period.
Despite the increase, the refinery said it had absorbed roughly 20 percent of the rising operational costs to cushion the impact on the domestic market.
However, data from the Major Energies Marketers Association of Nigeria suggests that imported petrol may currently be cheaper, with landing costs estimated at about N809.37 per litre, lower than Dangote refinery’s previous N874 gantry price.
