The Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), popularly known as petrol, after a one-week suspension—introducing a revised ex-depot price of N850 per litre, a 3.66% increase from the previous rate of N820.
The development, confirmed through data from the industry pricing platform PetroleumPrice.ng, has stirred fresh concerns across Nigeria’s downstream oil sector over possible pump price hikes nationwide. The new pricing became effective Thursday as loading activities restarted at the 650,000-barrels-per-day facility located in the Lekki Free Trade Zone, Lagos.
Suspension and Resumption of Sales
The resumption follows last week’s abrupt halt in petrol sales by the multi-billion-dollar refinery—a move that sent ripples through the downstream market, triggering pricing uncertainty and operational disruptions.
An internal circular titled “Important Update on DPRP Collection Account for PMS” had directed marketers to suspend payments for PMS loading, effectively freezing distribution operations. The memo read:
“Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold. Further updates will be communicated shortly.”
Now, with the facility back online and loading operations underway, the revised ex-depot rate signals a likely upward adjustment in retail pump prices in the coming days.
Global Market Influences
Although the Dangote Group has not released an official statement explaining the price increase, industry insiders attribute it to volatile global crude oil prices. Roughly 50% of the refinery’s crude feedstock is imported from the United States, exposing operations to international price fluctuations.
Despite this, the refinery continues to undercut competitors in the diesel market, offering Automotive Gas Oil (AGO) to bulk buyers at N990 per litre—below the N1,030 per litre average across other depots.
Diesel prices at private depots in Lagos, including Pinnacle and Aiteo, ranged between N1,010 and N1,050 per litre on Thursday, reinforcing Dangote’s advantage in that segment.
Sector-wide Impacts and Skepticism
While the restart of loading activities has brought some relief to marketers, stakeholders remain wary of further price volatility and the refinery’s evolving supply strategy.
Commissioned in 2023, the $20 billion Dangote Refinery—currently ramping up capacity from 650,000 to 700,000 barrels per day—was expected to reduce Nigeria’s reliance on fuel imports. However, recent data paints a different picture.
According to figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as much as 71.38% of Nigeria’s petrol consumption in May and June 2025 was met through imports, with just 28.62%sourced from Dangote’s facility.
The statistics highlight a persistent trend: Nigerian marketers are still heavily dependent on foreign refined products, despite the availability of local refining capacity.
Price Stability at Other Depots
In contrast to the Dangote Refinery’s upward adjustment, most private depots across the country maintained relatively stable ex-depot prices.
In Lagos, depots such as Pinnacle, Aiteo, and MRS Tincan were selling PMS at N855 per litre, showing a marginal drop of N5 or 0.58%. Others, like Zamsom, Parker, and A&E, posted rates of N859 per litre, indicating slight declines of around 0.35%.
Operators at Nipco Lagos, Matrix Warri, and Prudent Lagos kept prices steady at N860 per litre, reflecting a cautious approach amid changing market signals.
In Port Harcourt and Warri, downward price adjustments were observed. For example, TSL and Ever reduced prices to N872 per litre, down by N10 (1.13%) and N8 (0.91%) respectively. Sigmund and Masters recorded slight decreases as well, selling at N875 per litre.
As the downstream sector navigates these evolving dynamics, the return of Dangote’s petrol sales offers short-term relief but also underlines the fragility of Nigeria’s fuel supply framework—still tethered to global market pressures and inconsistent local production.
