Dangote Petroleum Refinery, Africa’s largest single-train refinery, has announced a significant adjustment in its petrol pricing structure, compelling marketers across Nigeria to pay an additional ₦100 per litre for Premium Motor Spirit (PMS), commonly known as petrol. The sudden upward review at the gantry level has triggered immediate ripple effects across the downstream petroleum market, leading to sharp increases in retail prices at filling stations nationwide.

In a notice to customers issued by the refinery’s Group Commercial Operations Department, previously agreed deals at ₦699 per litre were invalidated, and marketers were instructed to “top up” payments to ₦799 per litre before loading products at the refinery’s gantry. This revision came after the company withdrew a temporary festive-period price support intervention, citing unsustainability of the earlier rate.

Industry insiders described the development as a major price realignment, noting that dozens of petrol tankers were left stranded at the refinery’s gantry as loading operations were temporarily halted to reconcile outstanding volumes and payments under the new pricing regime.

Immediate Impact on Retail Prices
The increase at the refinery level has swiftly filtered through to filling stations, with retail prices rising sharply in major cities. In Abuja, for example, petrol prices climbed to as high as ₦910 per litre barely hours after the refinery announced the revised ex-depot price.

Market checks by reporters showed notable variations in retail pricing:

• Optima Energy outlets at key junctions sold petrol around ₦910 per litre, up from approximately ₦815 previously.

• AP stations near the airport recorded prices near ₦899 per litre.

• Other retail outlets listed pump prices within the ₦800–₦850 per litre range, reflecting different supply costs and logistics considerations.

Analysts say this sharp retail response underlines the downstream market’s sensitivity to changes in ex-depot pricing, especially given Dangote Refinery’s dominant role in local fuel supply since it began nationwide distribution.

Industry and Market Reactions
The price revision has reignited tensions within the downstream petroleum sector, as marketers adjust to higher procurement costs while also managing inventory bought under earlier pricing terms.

Some marketers argued that the unexpected adjustment places additional financial strain on operations already grappling with logistics and cash-flow challenges.
Meanwhile, earlier reports had indicated that Dangote’s sharp price reductions late last year encouraged competition and even led some marketers to slash pump prices by around ₦100 per litre in attempts to attract motorists.

Despite these competitive efforts, industry stakeholders previously warned that the Dangote refinery, despite its capacity to produce up to 650,000 barrels per day, may not fully meet Nigeria’s total petrol demand, leading to structural challenges in the supply chain.

Broader Context

This development comes against the backdrop of volatile fuel pricing dynamics in Nigeria, where deregulation, foreign exchange pressures, and adjustments by both local refiners and importers continually influence pump prices for consumers. Recent reports have noted that pump prices in some regions had climbed to record levels even before the latest adjustment.

Energy economists say that while the Dangote Refinery has significantly reduced Nigeria’s reliance on imported petrol, downstream pricing remains tightly linked to market forces, including global crude prices, logistics costs, and internal refinery cost structures.