The Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS), popularly known as petrol, after a one-week halt in operations, raising its ex-depot price to ₦850 per litre, up from the previous ₦820. This 3.66% price hike has sparked renewed concerns over an imminent nationwide increase in pump prices.
The move comes amid volatility in global crude oil prices, which analysts believe influenced the refinery’s pricing decision. According to data from industry tracker Petroleumprice.ng, the revised rate became effective on Thursday, coinciding with the restart of loading operations at the 650,000 barrels-per-day mega-refinery situated in Lagos’ Lekki Free Trade Zone.
This comes just a week after the refinery abruptly suspended sales, issuing an internal memo titled “Important Update on DPRP Collection Account for PMS” to downstream marketers. The notice instructed all operators to pause payments for petrol allocation, effectively freezing supply and disrupting distribution chains across the country.
However, Dangote’s return to operations and the new pricing strategy have had a ripple effect on the market. Marketers have resumed lifting PMS, but concerns linger about the knock-on effect on end-user pump prices, especially as depot and retail operators adjust to the new cost structure.
Despite the ex-depot hike by Dangote, several major depots across Lagos maintained relatively stable prices, reflecting a wait-and-see posture from downstream players. Depots like Pinnacle Oil, Aiteo, and MRS Tincan pegged PMS at around ₦855 per litre, a marginal decline of ₦5 from previous sessions. Others like Zamsom, Parker, and A&E quoted slightly higher rates at ₦859 per litre.
In Warri and Port Harcourt, minor downward price corrections were observed. Terminals such as TSL and Ever posted PMS rates of ₦872 per litre, showing a reduction of between ₦8 and ₦10. This indicates localized market resistance to abrupt price hikes.
Depot operators such as Nipco Lagos, Matrix Warri, and Prudent Lagos maintained rates at ₦860, highlighting ongoing pricing competition and market recalibration following Dangote’s revised pricing.
Interestingly, while petrol pricing fluctuates, Dangote continues to retain a competitive advantage in the diesel (AGO) market. The refinery currently sells AGO at ₦990 per litre, which is notably lower than the ₦1,030–₦1,050 average charged by private depots across Nigeria. This has positioned Dangote as a preferred supplier for many bulk buyers in the industrial and logistics sectors.
Despite the commissioning of the $20 billion Dangote Refinery in 2023, recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveals that 71.38% of the country’s petrol consumption in May and June 2025 was still met through importation. Only 28.62% of domestic supply came from Dangote’s operations.
Industry watchers blame this imbalance on factors such as limited access to local refinery products, slow ramp-up in full capacity operations, and a lack of clarity around pricing structures and supply chains.
The resumption of petrol sales by Dangote Refinery brings temporary relief to a tense market, but the price hike underscores the volatility in Nigeria’s downstream sector. As marketers adjust to the new ex-depot rate, attention now turns to how this will impact pump prices and broader inflation in a fuel-dependent economy.
While the refinery continues to lead in diesel affordability, its role in stabilizing petrol supply remains in flux. With crude oil still being partially imported from the United States for refining, Dangote’s ability to insulate Nigeria from global price shocks appears limited — at least in the short term.