Dangote Refinery Resumes Petrol Supply with 3.66% Price Hike to N850 per Litre

The Dangote Petroleum Refinery has resumed sales of Premium Motor Spirit (PMS)—commonly referred to as petrol—after a one-week suspension, announcing a new ex-depot price of N850 per litre, up from N820.

This change reflects a 3.66% (N30) increase and has raised fresh concerns over potential increases in pump prices across Nigeria. The revised price, observed on petroleumprice.ng, became effective Thursday, as the 650,000 barrels-per-day refinery located in the Lekki Free Trade Zone, Lagos, resumed loading operations.

The refinery had halted petrol distribution the previous week, sparking market uncertainty and downstream price volatility. An internal memo titled “Important Update on DPRP Collection Account for PMS” had instructed marketers to suspend all payments for petrol loading at its gantry, temporarily stopping all allocations. “Effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold,” the memo read, with no initial explanation provided.

With the suspension now lifted, the facility resumed loading activities at the new N850 rate, a move that could potentially push retail prices upward in the coming days.

Although no official statement has been issued regarding the price change, industry sources suggest the increase is linked to shifts in global crude oil prices. Notably, Dangote Refinery reportedly sources about 50% of its crude from the United States, making it susceptible to international market fluctuations.

Despite the upward adjustment in petrol pricing, the refinery has kept its diesel rates competitive, selling Automotive Gas Oil (AGO) at N990 per litre to bulk buyers. This is considerably lower than the average N1,030 per litre charged by other private depots across Lagos and beyond.

Investigations by The PUNCH on Thursday confirmed that diesel prices at other terminals range from N1,010 to N1,050 per litre, highlighting Dangote’s sustained advantage in the diesel market.

The resumption of operations has brought temporary relief to fuel marketers who were worried about extended disruptions. However, many remain cautious, citing unpredictable crude prices and limited transparency around Dangote’s supply processes.

Commissioned in 2023, the Dangote Refinery—currently increasing its capacity from 650,000 to 700,000 barrels per day—was envisioned to stabilize Nigeria’s downstream oil sector and lessen reliance on imported fuel. However, recent challenges suggest that achieving full operational stability may still take time.

New figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority reveal that fuel marketers are increasingly turning to imports. According to the latest data, 71.38% of the country’s daily petrol consumption in May and June 2025 came from imported sources, with just 28.62% supplied by the Dangote Refinery.

This trend indicates that, rather than sourcing products locally, marketers continue to use scarce foreign exchange reserves to import refined petroleum products.

Meanwhile, despite the price adjustment at Dangote Refinery, ex-depot petrol prices at major private depots across Nigeria have remained relatively stable. Market data from petroleumprice.ng showed prices ranging between N855 and N860 per litre in Lagos.

At Pinnacle, Aiteo, and MRS Tincan depots, petrol was listed at N855 per litre, a slight N5 (0.58%) drop. Zamsom, Parker, and A&E depots reported prices at N859, marking a small decline of N3 (0.35%).

Other depots—Nipco Lagos, Matrix Warri, and Prudent Lagos—held prices steady at N860, showing no change, signaling a cautious stance by market players following Dangote’s price revision.

In Port Harcourt and Warri, modest reductions were also recorded. TSL and Ever depots sold PMS at N872 per litre, decreasing by N10 (1.13%) and N8 (0.91%) respectively, while Sigmund and Masters lowered prices to N875, trimming N5 and N4 each from prior levels.