The Dangote Petroleum Refinery has increased the price of Premium Motor Spirit, popularly known as petrol, for the third time in eight days, raising its gantry price by N65 per litre and triggering fresh concerns over the impact on fuel prices across Nigeria.
The latest adjustment takes the refinery’s gantry price from N1,200 to N1,265 per litre and took effect on Saturday, according to a price-change communication issued by Dangote Petroleum Refinery and Petrochemicals FZE.
The latest increase represents a 5.4 per cent rise and brings the total increase in the refinery’s petrol price within just over a week to N100 per litre, equivalent to an 8.6 per cent increase.
The refinery had first raised its petrol price on August 21, increasing the gantry price from N1,165 to N1,185 per litre. Five days later, on August 26, the price was increased again to N1,200 per litre. The latest N65 adjustment now takes the price to N1,265 per litre.
The company also increased its coastal price from N1,582,380 to N1,669,545 per metric tonne.
In its latest communication to customers, the refinery directed buyers to return existing Authorisations to Collect for repricing before loading could resume. The company said new volume contracts would be issued to customers following the adjustment.
The repeated price changes are expected to have implications for the downstream petroleum market, particularly as fuel marketers adjust their depot and retail prices to reflect the higher cost of supply.
The development could put additional pressure on motorists and households already struggling with elevated transportation and living costs. Any sustained increase in petrol prices could also feed into the cost of transporting food and other commodities, given the country’s heavy reliance on road transportation.
The latest adjustment comes amid continued volatility in international energy markets and concerns over crude oil supply and logistics costs. Industry observers have linked the recent changes partly to increased freight rates and disruptions associated with geopolitical tensions in the Middle East.
The price movement has also generated interest because the August 26 increase occurred despite a decline in international crude prices at the time. Data cited by PUNCH showed West Texas Intermediate crude trading at $82.13 per barrel, while Brent crude stood at $88.37 per barrel after recording significant declines.
However, crude prices subsequently remained volatile as uncertainty surrounding the conflict involving Iran and the United States continued to affect expectations about global oil supply and transportation.
The latest development is particularly significant for Nigeria because the Dangote refinery has become one of the country’s most important sources of locally refined petroleum products. The refinery, Africa’s largest single-train refinery, has increasingly supplied petrol to the domestic market while also exporting surplus products when local demand is insufficient.
The refinery’s pricing decisions therefore have a significant influence on the country’s downstream petroleum market.
The latest increase also comes at a politically sensitive period, with economic hardship and the cost of living emerging as major issues ahead of the 2027 general elections. Opposition politicians and economic commentators have repeatedly criticised the high cost of fuel since the removal of the petrol subsidy in 2023.
The repeated adjustments could consequently intensify public debate over whether Nigeria’s transition to a market-driven petroleum pricing system is delivering the expected benefits to consumers.
For fuel marketers, the immediate challenge will be determining how much of the increase can be absorbed and how much must be transferred to consumers. For motorists, any corresponding rise at filling stations could further increase transportation expenses.
The development also highlights the vulnerability of Nigeria’s fuel market to fluctuations in international crude prices, exchange rates, shipping costs and domestic supply conditions.
With the Dangote refinery increasing its gantry price by N100 per litre in eight days, consumers and marketers will now be watching closely to determine whether the latest adjustment represents a temporary response to market conditions or the beginning of another period of sustained fuel-price increases.
