Dangote Petroleum Refinery has increased its Premium Motor Spirit (PMS) gantry price by ₦100, raising the ex-depot rate to ₦874 per litre from ₦774, sparking renewed anxiety over a potential surge in retail fuel prices nationwide.
A senior refinery official confirmed the adjustment on Monday, attributing it to instability in the international crude oil market.
“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 said.
Industry monitoring platform petroleumprice.ng shows the revised price has already taken effect, indicating that downstream operators will likely adjust pump prices in response.
The price review followed the refinery’s decision to suspend petrol loading operations from midnight on March 2, 2026, after global crude oil prices spiked above $80 per barrel.
Industry data revealed that PMS loading and issuance of proforma invoices were temporarily halted, although diesel (Automotive Gas Oil) distribution continued uninterrupted.
The move sent shockwaves through Nigeria’s downstream market, with several private depot operators reportedly suspending PMS sales during trading hours.
“Several depot owners suspended PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator said.
The 650,000-barrel-per-day refinery Africa’s largest adjusted its petrol price upward again on Monday, marking another revision after a similar ₦100 increase in late January.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed the development.
“It is due to global crude oil price volatility following the Iran-US-Israel war. It is the ripple effect of ongoing conflict,” he said.
According to him, the latest hike is expected to cascade into higher retail pump prices across the country.
The increase comes amid renewed geopolitical tensions involving Iran, United States, and Israel, which have unsettled global energy markets.
As of Monday, Brent crude traded at $78.50 per barrel, while West Texas Intermediate (WTI) stood at $71.84 both up significantly from weekend levels of $72.87 and $67.02 respectively.
Analysts note that crude prices briefly crossed the $80 threshold amid fears of supply disruptions in the Middle East.
Given that Nigeria’s refined petrol pricing is now largely deregulated and tied to international benchmarks, fluctuations in crude prices directly impact ex-depot and retail rates.
Can Petrol Exceed ₦1,000 Per Litre?
Energy economists say the possibility of PMS crossing ₦1,000 per litre cannot be ruled out if three conditions persist:
Sustained crude prices above $85–$90 per barrel
Continued naira weakness against the US dollar
Rising logistics and distribution costs within Nigeria
With exchange rate pressures and global risk premiums building into product pricing, replacement cost calculations could push depot prices closer to the ₦900–₦950 range in the short term. Retail prices which include transportation margins and dealer markups could edge toward or surpass ₦1,000 per litre if crude rallies further.
However, market observers note that domestic refining capacity from Dangote may still moderate extreme volatility compared to full import dependence, provided crude supply agreements remain stable.
For now, stakeholders across Nigeria’s energy value chain are closely monitoring international developments, as geopolitical tensions continue to dictate pricing momentum in Africa’s largest fuel market.
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