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Dangote Petroleum Refinery has increased its ex-depot price for Premium Motor Spirit (PMS) to N880 per litre, representing a N55 increase from the previous rate of N825 per litre. This development has raised fresh concerns over fuel affordability and price volatility in the downstream sector.
According to checks on (link unavailable) and a Pro Forma Invoice, the new price is expected to have a ripple effect across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.
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Interestingly, the price hike comes despite a decline in global crude prices. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. However, the refinery’s reliance on imported U.S. crude and operational costs, amid exchange rate instability, has added to its pricing pressure.
Dangote Group President, Aliko Dangote, recently stated that the refinery was “increasingly” relying on the United States for crude oil due to crude shortages. “The refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025,” Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) President, Festus Osifo, had earlier accused oil marketers of exploiting Nigerians through inflated petrol prices. “If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre,” Osifo stated.
The latest development is expected to have a domino effect, with depot owners and fuel distributors in Lagos and other cities anticipating new price bands to follow Dangote’s lead. Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs, fuelling speculation and allowing opportunistic price hikes across various depots.
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Jonathan Nwokpor
