Dangote Refinery hikes petrol price to N874 as crude nears $80 per barrel

RISING global oil prices have begun to filter into Nigeria’s domestic fuel market, with Dangote Petroleum Refinery increasing its ex-depot price of Premium Motor Spirit (PMS) to N874 per litre, up from N774.

The N100 increment comes as international crude benchmarks neared $80 per barrel by Monday night after surging past it earlier in the day, tightening cost conditions for refiners that rely on globally priced feedstock. A senior official of the refinery confirmed the new gantry price on Monday, noting that the review was driven by higher crude acquisition costs and shifting global market fundamentals.

The adjustment effectively resets pricing expectations across the downstream sector. Data from petroleumprice.ng show the revised template has taken effect, meaning marketers lifting products from the refinery will now contend with higher landing and replacement costs — a development likely to cascade into pump prices nationwide.

READ ALSO: Dangote Refinery lowers petrol price to N774 per litre

The hike follows the temporary suspension of PMS loading operations at the refinery effective midnight, March 2, 2026. Industry sources said the issuance of proforma invoices was also put on hold during the period, although Automotive Gas Oil (diesel) loading continued without disruption.

The move triggered caution among private depot operators, several of whom reportedly paused petrol sales during the trading session. Market participants said the crude rally has introduced risk premiums into pricing decisions, with traders unwilling to sell products below replacement value in a fast-moving market.

The development highlights the growing responsiveness of Nigeria’s deregulated petrol regime to global oil swings. Since subsidy removal and market liberalisation, domestic fuel prices have become more directly aligned with international crude trends, exchange rate movements and supply-demand shifts, exposing consumers to the volatility of global energy markets.

Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, predicted on Sunday that the renewed Middle East tensions could push up global petrol prices.

This would raise transportation and logistics costs, push up food distribution expenses and increase production costs for manufacturers. Energy costs have a strong multiplier effect on Nigeria’s inflation dynamics, particularly as transportation and food make up a large share of household spending, he noted.

CPPE warned that while government revenues might improve, households could face worsening cost-of-living pressures, potentially deepening poverty levels.

“Thus, while government revenues may rise, household welfare could deteriorate – creating a divergence between fiscal gains and social outcomes,” Yusuf noted.