Dangote Refinery Announces Significant Petrol Price Hike
The Dangote Petroleum Refinery has implemented a substantial increase in the price of petrol, raising it by over N100 per litre. This adjustment, announced on Monday, March 2, 2026, sees the ex-depot price for Premium Motor Spirit (PMS) climb from N774 to N875 per litre. The move is set to trigger a nationwide rise in pump prices as marketers across Nigeria prepare to adjust their rates accordingly.
Global Market Volatility Drives Price Review
A senior official at the refinery confirmed the price increase, attributing it directly to volatility in global crude oil markets and rising replacement costs. The official stated that the review became necessary due to changes in global crude fundamentals, with international crude oil prices surging past $80 per barrel. This price hike follows the refinery's temporary suspension of petrol loading operations, effective midnight on March 2, 2026, halting product lifting and the issuance of Proforma Invoices (PFIs).
Industry data indicated that PMS loading stopped at midnight, pausing new transactions and creating a ripple effect across the downstream sector. Several private depot owners suspended PMS sales during the trading day, with one downstream operator noting that the market is already factoring in risk premiums, as no one wants to sell below replacement cost.
Nationwide Impact and Market Adjustments
Marketers, including major players like MRS Oil Nigeria Plc and Ardova Plc, will now have to adjust their pump prices to reflect the new ex-depot rate. Checks on petroleumprice.ng showed the revised rate had already been reflected, signalling a shift in downstream pricing benchmarks. This development comes amid heightened global oil market volatility, linked to tensions between the United States and Iran, raising concerns over possible supply disruptions, particularly around the Strait of Hormuz, a strategic route for global crude shipments.
Energy analysts have warned that Nigeria could see further increases in petrol and diesel prices if crude prices climb above $90 per barrel. They cite potential disruptions to global supply chains, rising shipping and insurance costs, and higher refining expenses, despite Nigeria's expanding local refining capacity.
Economic Implications and Inflationary Pressures
Muda Yusuf, the Chief Executive Officer for the Centre for the Promotion of Private Enterprise (CPPE), highlighted the domestic welfare risks associated with this price hike. He explained that with deregulated fuel pricing, higher international crude costs translate directly into rising petrol, diesel, and aviation fuel prices. This, in turn, feeds into transportation, food distribution, and manufacturing costs, intensifying inflationary pressures across the economy.
In a related development, petrol prices at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC Limited) in Lagos have been adjusted downward by N25 to N815 per litre from the previous rate of N840. This contrast underscores the dynamic and often divergent pricing strategies within Nigeria's fuel market, as different entities respond to varying operational and market conditions.
The latest price adjustment by Dangote Refinery marks a significant moment in Nigeria's energy sector, reflecting the ongoing challenges of global oil market fluctuations and their direct impact on local fuel costs. As stations nationwide begin to adjust their pumps, consumers brace for higher expenses, while analysts monitor the situation for potential further increases driven by international crude trends.
