Dangote Refinery Hikes Petrol Price Amid Global Crude Volatility

The Dangote Petroleum Refinery has increased the gantry price of Premium Motor Spirit (petrol) by ₦100, raising the ex-depot price from ₦774 to ₦874 per litre. An official confirmed the adjustment on Monday, attributing the decision to recent volatility in global crude oil markets and rising replacement costs. The price hike follows a surge in international crude prices past the $80 per barrel mark, which prompted the refinery to temporarily suspend petrol loading operations over the weekend.

The suspension, which took effect on March 2, 2026, halted petrol loading and the issuance of proforma invoices specifically for petrol, while diesel (Automotive Gas Oil) operations continued without disruption. This move triggered widespread reactions across the downstream sector, leading several private depot owners to also suspend petrol sales in response to the crude rally. The market is now factoring in increased risk premiums amid the global price fluctuations.

The price revision is linked to heightened tensions between the United States and Iran, which have raised concerns about potential supply disruptions, particularly along the strategic Strait of Hormuz. This geopolitical instability has injected fresh volatility into global energy markets, directly impacting refining costs and benchmarks in Nigeria. The development underscores the sensitivity of the local downstream sector to international crude dynamics.

Energy analysts warn that if crude prices continue their upward trajectory toward $90 per barrel, Nigeria could see further increases in both petrol and diesel prices. Such a rise would drive up shipping, insurance, and refining costs, potentially offsetting the benefits of the country’s expanding local refining capacity. The current adjustment signals that domestic prices remain closely tied to global market fundamentals.

Market checks confirm that the new pricing has already been implemented at the gantry level, signaling a shift in downstream benchmarks that will likely translate into higher pump prices nationwide. As the revised ex-depot rate of ₦874 takes effect, consumers and retailers are bracing for increased fuel costs, further straining household budgets and commercial operations across the country