Dangote Refinery Raises Petrol Price to ₦1,275 Per Litre

Dangote Refinery Raises Petrol Price to ₦1,275 Per Litre

The Dangote Petroleum Refinery has increased its ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by ₦75 per litre, deepening concerns over another nationwide increase in fuel prices as marketers brace for higher depot and retail costs.

Industry pricing data and market sources confirmed on Wednesday that the refinery raised its petrol loading price from ₦1,200 per litre to ₦1,275 per litre, while its coastal supply price climbed to ₦1,215 per litre.

A senior refinery official confirmed the adjustment, saying: “Yes, the increase of PMS to ₦1,275 per litre is true. Coastal price is ₦1,215.”

The latest increase comes just weeks after previous adjustments by the refinery and has already triggered reactions across Nigeria’s downstream petroleum market, with marketers anticipating corresponding increases at filling stations nationwide.

The situation became more tense after reports emerged that the refinery temporarily suspended its Proforma Invoice (PFI) processing system on Tuesday evening, disrupting normal product loading and supply scheduling.

Sources familiar with operations at the refinery disclosed that the suspension took effect around 4:00 p.m., affecting the processing of orders for both petrol and Automotive Gas Oil (AGO), commonly known as diesel.

Industry operators said the disruption immediately affected loading activities and created uncertainty among depot owners, fuel marketers, and logistics operators dependent on Dangote Refinery supplies.

Market analysts noted that interruptions within the refinery’s loading system could tighten product availability in the short term and further increase pressure on fuel prices across the country.

The latest development has also triggered anxiety among independent marketers and petroleum distributors, many of whom are now reviewing pricing templates in anticipation of higher operational and replacement costs.

Industry stakeholders warned that rising ex-depot prices usually translate into increased transportation costs, logistics expenses, and eventual pump price adjustments at retail stations.

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Some marketers further expressed concern that the suspension of sales and invoice processing could temporarily affect supply volumes in parts of the country if not quickly resolved.

The downstream petroleum market has remained highly volatile in recent months following deregulation of the sector and fluctuations in foreign exchange rates.

The increase in petrol prices also coincides with a sharp rise in global crude oil prices, driven largely by escalating geopolitical tensions around the Strait of Hormuz, one of the world’s most critical oil shipping routes.

As of Wednesday morning, Brent crude traded at approximately $114.80 per barrel, reflecting a 3.15 per cent increase, while West Texas Intermediate (WTI) crude rose to about $103.40 per barrel, up by 3.49 per cent.

Energy analysts say the surge in international crude prices has significantly increased feedstock and replacement costs for refiners globally, including the Dangote Refinery.

The rising cost of crude oil is expected to continue putting pressure on refined petroleum products such as petrol, diesel, and aviation fuel.

Economic observers have warned that another increase in petrol prices could worsen inflationary pressures across Nigeria, especially in transportation, food distribution, manufacturing, and logistics sectors.

Transport operators in some cities have already hinted at possible fare increases if fuel prices continue to rise.

The development also comes amid growing concerns over rising energy costs in Nigeria’s aviation sector, where operators have recently raised alarm over increasing Jet A1 aviation fuel prices.

Despite the latest pricing concerns, the Dangote Refinery remains one of the biggest players in Nigeria’s energy market and Africa’s largest single-train refinery.

The refinery has increasingly become a major supplier of refined petroleum products within Nigeria and neighbouring African countries, helping reduce dependence on imported fuel products.

Industry analysts say the refinery’s pricing decisions now significantly influence Nigeria’s downstream petroleum market due to its growing supply dominance.

Meanwhile, marketers and industry stakeholders are awaiting further clarification from the refinery on when full product sales and invoice processing operations will resume.

Dangote Refinery Raises Petrol Price to ₦1,275 Per Litre