The Dangote Petroleum Refinery has restarted sales of Premium Motor Spirit (PMS), commonly known as petrol, after a one-week suspension — but at a higher depot price of ₦850 per litre, up from ₦820.
This 3.66% increase has sparked fresh concerns over a possible nationwide rise in pump prices.
According to industry monitoring platform petroleumpriceng, the new pricing took effect yesterday when the 650,000-barrels-per-day plant resumed loading operations.
The suspension, triggered by an internal directive halting payments to the refinery’s gantry account, had disrupted supply chains and caused volatility in Nigeria’s downstream petroleum sector.
While the Dangote Group has yet to officially comment on the price hike, industry insiders have revealed that the adjustment could be linked to global oil market trends.
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The refinery sources roughly half its crude feedstock from the United States, making it vulnerable to international price fluctuations that may have influenced the ex-depot rate.
The move marks a shift from Dangote’s earlier role in driving competitive pricing in Nigeria’s fuel market.
Recently, importers such as Aiteo and Menj undercut Dangote’s rates, offering depot prices as low as ₦815. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that while Dangote sold at ₦820 before the latest hike, other suppliers were offering rates between ₦815 and ₦817, with the Nigerian National Petroleum Company (NNPC) maintaining ₦825.
Competition has also been evident at the pump. While Dangote-linked marketers such as MRS and Heyden kept prices between ₦865 and ₦875 in Lagos and Ogun, some independent stations sold below ₦860 per litre, Business Insider Africa notes.
Adding to market pressures, Nigeria has seen a surge in imported petrol. Figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), submitted to the Federation Accounts Allocation Committee (FAAC) for June 2025, show imports accounted for 71.38% of daily petroleum consumption in May and June, while Dangote Refinery supplied just 28.62%.
This evolving market dynamic — with increased reliance on imports, heightened competition, and global price exposure — could determine how far the latest ex-depot price hike will impact retail fuel costs across Nigeria
Image Credit: Premium Times Nigeria
