Imported Petrol 12% Cheaper Than Dangote Fuel – World Bank

The World Bank has revealed that imported Premium Motor Spirit (PMS) is currently about 12 per cent cheaper than petrol supplied by the Dangote Petroleum Refinery, raising concerns over pricing distortions and rising inflationary pressures in Nigeria’s economy.

The disclosure was contained in the Bank’s latest Nigeria Development Update, which highlighted widening gaps between import parity prices and locally refined fuel costs amid volatile global oil market conditions. According to the report, Dangote refinery’s ex-depot price stood at about ₦1,275 per litre as of March 2026, compared to an estimated ₦1,122 per litre for imported petrol, creating a significant price advantage for imports.

Despite the report, Dangote refinery has denied any recent increase in petrol prices, maintaining that its current pricing structure remains unchanged. A source within the company stated that the gantry price is fixed at ₦1,200 per litre, while the coastal price stands at ₦1,153 per litre, stressing that no new pricing has been introduced. The refinery reiterated its commitment to ensuring steady fuel supply across Nigeria and other African markets, positioning itself as a stabilising force in the downstream sector.

The World Bank noted that the price disparity persists even as Dangote refinery has become a dominant supplier of petrol in Nigeria, particularly following the halt in fuel import licences earlier in 2026. According to analysts, this situation reflects structural inefficiencies in the domestic fuel market, including foreign exchange pressures, logistics costs, and crude pricing mechanisms.

The report warned that rising global crude oil prices—driven by geopolitical tensions, particularly in the Middle East—could worsen inflationary pressures if sustained. It projected that an increase in oil prices to about $80 per barrel could add roughly 3.1 percentage points to Nigeria’s headline inflation, assuming full pass-through to domestic fuel prices.

The Bank explained that energy costs serve as a major inflation transmission channel, with transport alone accounting for about 10.1 per cent of Nigeria’s Consumer Price Index (CPI). Higher fuel prices, therefore, have a multiplier effect, increasing costs across transportation, food distribution, and other sectors of the economy.

Beyond fuel, the report highlighted additional risks from rising global food and fertiliser prices, which are also being influenced by the same geopolitical disruptions affecting oil markets. This combination, the Bank warned, could further strain household incomes and worsen cost-of-living pressures.

Speaking during the report presentation in Abuja, the World Bank Country Director for Nigeria, Mathew Verghis, acknowledged improvements in Nigeria’s macroeconomic outlook through 2025 and early 2026, driven by ongoing reforms. However, he cautioned that external shocks remain a major threat to price stability, particularly through rising energy and shipping costs.

Similarly, the World Bank’s Lead Economist for Nigeria, Fiseha Haile, noted that increases in petrol prices have already filtered through transport and logistics chains, amplifying cost pressures across multiple sectors. He also pointed to ongoing vulnerabilities, including volatile global financing conditions and weaker capital inflows, despite improvements in Nigeria’s external reserves and exchange rate reforms.

Meanwhile, global oil prices have recently declined sharply following a ceasefire agreement between the United States and Iran, easing immediate supply concerns. Benchmark Brent crude and West Texas Intermediate crude recorded their steepest one-day drops since 2020, falling to around $93 per barrel after the announcement by Donald Trump that both countries had agreed to a temporary truce and the reopening of the Strait of Hormuz.

Despite this easing, the World Bank maintained that Nigeria’s economy remains highly exposed to global oil market volatility, warning that sustained uncertainties could continue to pressure inflation, fuel prices, and household welfare in the months ahead.

Imported Petrol 12% Cheaper Than Dangote Fuel – World Bank

Fuel Relief: Dangote Reverses Petrol Price Hike, Drops PMS to ₦1,200

The Dangote Petroleum Refinery & Petrochemicals has reversed its recent petrol price increase, reducing the ex‑gantry price of Premium Motor Spirit (PMS) — commonly known as petrol — to ₦1,200 per litre amid a sharp decline in global crude oil prices triggered by easing geopolitical tensions.

The adjustment marks a ₦75 reduction from the previous price of ₦1,275 per litre, which had been introduced only days earlier due to rising crude oil benchmarks. A senior refinery official confirmed the rollback, noting that international oil market fluctuations directly influence domestic fuel pricing.

“The adjustment aligns with global market trends,” the official said, adding that geopolitical developments in the Middle East, including a temporary ceasefire agreement between the United States and Iran, contributed to the drop in crude oil prices. Brent crude fell by 13.28% to $94.76 per barrel, while US West Texas Intermediate dropped by 14.72% to $96.31 per barrel, easing pressure on domestic fuel costs.

READ ALSO:

• Trump Accuses CNN of ‘Fake News’ Over Iran Ceasefire Victory Report
• Police Debunk Viral Claim of 488 Boko Haram Arrests in Abia
• Trump Threatens 50% Tariffs on Countries Supplying Weapons to Iran

In a statement, the refinery clarified that no new petrol price increase has been implemented, confirming that the gantry price remains at ₦1,200 per litre and the coastal price at ₦1,153 per litre. The company assured the public of its commitment to steady fuel supply across domestic and regional markets.

The reduction comes amid ongoing volatility in Nigeria’s downstream petroleum sector, influenced by foreign exchange fluctuations, supply chain challenges, and global oil price swings. The Dangote refinery, which began operations in September 2024, has become a dominant player in Nigeria’s fuel market, significantly affecting pricing and supply patterns nationwide.

Analysts note that while the rollback is welcomed by consumers, retail petrol prices may still vary depending on how quickly marketers adjust pump prices, distribution logistics, and exchange rate considerations. The refinery’s responsiveness underscores the integration of Nigeria’s fuel pricing with international market realities following deregulation of the downstream sector.

Fuel Relief: Dangote Reverses Petrol Price Hike, Drops PMS to ₦1,200

Oil prices tumble after US–Iran deal, Nigeria’s fuel cost remains high

Global oil markets tumbled and equities surged on Wednesday after the United States and Iran struck a fragile, conditional ceasefire deal that includes reopening the critical Strait of Hormuz shipping route.

Brent crude plunged by 13 per cent to $94.80 a barrel, while US-traded crude dropped more than 15 per cent to $95.75—marking one of the sharpest declines since the conflict erupted on 28 February.

Despite the drop, prices remain significantly above pre-war levels of around $70 per barrel.

In Nigeria, this sigh of relief is yet to reflect in the pump price of fuel. Indeed, the last report as of Tuesday night was an increase of five per cent by Dangote Petroleum Refinery in its gantry price of petrol, pushing it to N1,275 per litre, from N1,200 per litre.

The ceasefire—set to last two weeks—offers temporary relief to global energy markets rattled by weeks of disruption. The Strait of Hormuz, a vital artery for global oil shipments, had been under threat after Iran warned it could target vessels in retaliation for US and Israeli airstrikes.

The easing of tensions sent stock markets rallying across Asia. Japan’s Nikkei 225 jumped 5 per cent, South Korea’s Kospi surged nearly 6 per cent, while Hong Kong’s Hang Seng rose 2.8 per cent. Australia’s ASX 200 also gained 2.7 per cent, with US futures pointing to a strong opening on Wall Street.

Announcing the deal on social media, former US President Donald Trump said Washington would suspend military action for two weeks—on the condition that Iran ensures the “complete, immediate, and safe” reopening of the Strait.

READ ALSO:

• Bill Gates to Testify Before US House Panel in High‑Profile Jeffrey Epstein Probe
• Trump Announces Two‑Week Ceasefire With Iran, Pauses Planned Bombing
• Arsenal Edge Sporting in Lisbon with Last-Minute Havertz Strike

Iran’s Foreign Minister, Abbas Araghchi, signalled Tehran’s willingness to comply, stating that a ceasefire would hold if attacks on Iran stop, adding that safe passage through the strait “will be possible.”

A report by BBC News quotes analysts as saying the move reflects growing pressure on both sides to avoid further economic fallout. Escalation risked driving energy prices even higher, potentially triggering what market watchers describe as a “self-inflicted economic wound.”

With the ceasefire in place, more oil tankers stranded near the strait are expected to resume transit, offering short-term relief. However, experts caution that a full recovery in energy supply remains distant.

Infrastructure damage across the Middle East could take months—if not years—to repair. Iran’s retaliatory strikes have hit key energy facilities, with estimates suggesting reconstruction could exceed $25 billion.

The conflict has already left deep scars on global energy supply chains. In mid-March, strikes on Qatar’s Ras Laffan industrial hub—responsible for roughly a fifth of global liquefied natural gas—cut export capacity by 17 per cent, with full repairs expected to take up to five years.

Asia has borne the brunt of the crisis, given its heavy reliance on Gulf energy supplies. Countries like India, Malaysia and the Philippines scrambled to secure safe shipping routes, while China confirmed that some of its vessels continued to pass through the strait despite the risks.

The economic strain has been severe. The Philippines, which depends on the Middle East for 98 per cent of its oil, declared a national energy emergency after fuel prices more than doubled.

Airlines across the region have also raised fares and cut routes as jet fuel costs soared.

While the ceasefire offers a breather, analysts warn it is far from a lasting solution. Energy production is unlikely to fully rebound until a durable peace agreement is secured—and even then, recovery will take time.

For now, markets are celebrating a pause in hostilities. But beneath the optimism lies a fragile reality: the global energy system remains on edge.

Oil prices tumble after US–Iran deal, Nigeria’s fuel cost remains high