Dangote Refinery Announces New Petrol Price

By Joshua Omoniyi 

 Fuel Price Surge: Dangote Refinery Implements New Pricing Structure Amid Global Oil Market Dynamics

In a significant development that has sent ripples through Nigeria's downstream petroleum sector, the Dangote Petroleum Refinery has announced a substantial adjustment to its Premium Motor Spirit (PMS) pricing structure, marking another chapter in the nation's evolving fuel pricing landscape.

The refinery, which has rapidly become a cornerstone of Nigeria's petroleum industry, revealed in a detailed communication on Friday that the new price for its refined products will stand at ₦955 per litre at the loading gantry. This represents a 6.17 percent increase from the previous holiday season rate of ₦899.50 per litre that brought temporary relief to millions of Nigerians during the December festivities.

Under the new tiered pricing system, bulk purchasers will benefit from slightly different rates based on volume. Marketers acquiring between 2 million and 4.99 million litres will pay ₦955 per litre, while those purchasing 5 million litres or more will enjoy a marginally reduced rate of ₦950 per litre. This strategic pricing approach aims to incentivize larger volume purchases while maintaining market stability.

The timing of this price adjustment, which took effect at 5:30 PM on the announcement day, has sparked discussions about its broader implications for the Nigerian economy. Industry experts suggest that this move could trigger a domino effect across the downstream sector, with private depots and retail markets likely to adjust their prices accordingly.

Olatide Jeremiah, CEO of Petroleum Price.ng and a respected voice in the oil and gas sector, provided crucial insight into the market dynamics at play. "Dangote Refinery's influence on fuel prices has become unmatched," he explained, highlighting how the refinery's pricing decisions now serve as a benchmark for the entire industry. The current Brent crude oil price of $81.84, the highest recorded in 2025, has been cited as a major factor driving this increase.

This development comes at a time when the Nigerian government has fully embraced deregulation in the downstream sector. Minister of State Petroleum Resources (Oil), Heineken Lokpobiri, recently emphasized that the government no longer intervenes in price-setting, leaving market forces to determine fuel prices. This hands-off approach marks a significant shift from decades of government price control and subsidy regimes.

For the average Nigerian consumer, this price adjustment arrives as a challenging reality check. The increase is expected to impact transportation costs, potentially affecting the prices of goods and services across the board. However, industry analysts argue that the pricing structure reflects the current realities of global oil markets and the operational costs involved in local refining.

The Dangote Refinery's price adjustment also highlights the delicate balance between maintaining operational sustainability and ensuring affordable access to petroleum products. As Nigeria's premier refining facility, its pricing decisions carry significant weight in shaping market trends and consumer expectations.

As the nation adapts to this new pricing regime, stakeholders across the petroleum value chain are closely monitoring its impact on market dynamics and consumer behavior. The development serves as a reminder of the intricate relationship between global oil prices, local refining capabilities, and the everyday economic realities faced by Nigerian citizens.

For consumers and businesses alike, this price adjustment signals the need for continued adaptation to market-driven fuel pricing, a stark departure from the era of fixed government-regulated prices. As Nigeria's downstream petroleum sector continues to evolve, the role of major players like the Dangote Refinery in shaping market dynamics becomes increasingly significant in the nation's economic landscape.