Petrol War: Dangote Refinery increases fuel price

The Dangote Petroleum Refinery has announced an increase in the ex-depot price of Premium Motor Spirit (PMS), commonly referred to as petrol, which will now be priced at ₦850 per litre.

This increase follows a one-week suspension of sales at the refinery.

The new price represents a 3.66 percent rise from the previous rate of ₦820 and has raised concerns regarding the potential escalation of pump prices across the nation.

Operations resumed on Thursday at the refinery, which has a capacity of 650,000 barrels per day and is located in the Lekki Free Trade Zone, Lagos.

The resumption followed a previous directive to marketers to suspend all payments for PMS loading until further notice, a pause that had introduced instability within the downstream market.

While the refinery has not formally announced the price increase, industry insiders have attributed this adjustment to fluctuations in global crude oil prices. It is noteworthy that Dangote imports approximately fifty percent of its crude feedstock from the United States.

Although petrol prices at major private depots have remained relatively stable, diesel from the refinery is currently being sold at ₦990 per litre, which is lower than the average price of ₦1,030 found at other depots.

Despite the commissioning of the refinery in 2023 with the objective of reducing import reliance, recent data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority indicates that during May and June 2025, 71.38 percent of Nigeria’s petrol supply was still derived from imports, while Dangote contributed only 28.62 percent.

The resumption of loading operations has alleviated immediate supply concerns; however, market participants remain vigilant in light of the ongoing volatility in crude prices.