Dangote raises petrol price despite crude oil decline

Dangote Petroleum Refinery and Petrochemicals FZE has increased the gantry price of Premium Motor Spirit, commonly known as petrol, from N1,185 to N1,200 per litre, effective Wednesday, August 26, 2026.

The latest adjustment was communicated to customers by the refinery’s Group Commercial Operations in an official notice issued on Tuesday.

The communication, titled “PMS Price Change Communication (N1,185 per Litre To N1,200 Per Litre),” informed customers of revised depot prices for both gantry and coastal deliveries.

New petrol prices take effect

According to the price table contained in the notice, the refinery increased its coastal price from N1,562,265 per metric tonne to N1,582,380 per metric tonne.

The gantry price was also increased by N15 per litre, moving from N1,185 to N1,200 per litre.

The refinery directed customers to return all existing Authorisation to Collect documents for repricing before loading resumes under the new price structure.

“You are advised to return all ATCs for repricing, and a new volume contract will be issued for immediate loading resumption,” the notice stated.

Second increase in less than a week

The latest adjustment comes barely five days after the refinery increased its gantry price from N1,165 to N1,185 per litre.

The previous increase took effect from midnight on August 21, 2026, according to industry trackers.

The latest N15 increase could translate into higher retail prices as marketers factor in transportation, depot and other downstream costs.

Petrol pump prices are consequently expected to return to an average of about N1,250 per litre.

Crude oil prices decline

The latest petrol price increase comes despite a decline in international crude oil prices.

Data from Oilprice.com on Tuesday showed West Texas Intermediate crude trading at $82.13 per barrel, representing a decline of $2.88, or 3.39 per cent.

Brent crude was quoted at $88.37 per barrel, down $3.80, or 4.12 per cent, while Murban crude fell to $92.71 per barrel after shedding $8.73, representing an 8.61 per cent decline.

The development has occurred against the backdrop of renewed volatility in the international oil market.

Marketers begin repricing

Marketers and depot operators who received the refinery’s circular may have begun returning existing Authorisation to Collect documents for repricing in line with the directive.

The ATCs are used by customers to collect petroleum products from the refinery, meaning the revised documentation will allow loading to resume at the new price.

The increase in the refinery’s gantry price is expected to be closely watched by marketers and consumers because changes in ex-depot prices can have a direct impact on retail petrol prices.

US-Iran conflict adds to oil market volatility

The price adjustment also comes amid renewed uncertainty in the global oil market linked to the ongoing US-Iran conflict.

Reuters reported that crude prices had fallen after investors assessed the latest US sanctions against Iran as posing a lower threat to global oil supplies than a potential military escalation.

However, analysts warned that the decline could prove temporary, particularly if Iran retaliates militarily and further threatens oil supplies.

Strait of Hormuz remains a major concern

Supply disruption risks have also remained a major concern for the international oil market.

Reuters reported that only two commodity vessels transited the Strait of Hormuz on Monday, the lowest daily tally since early May.

The waterway is a critical route for global energy supplies and handled about one-fifth of global oil consumption before the conflict began.

Any significant disruption to shipping through the Strait of Hormuz could therefore trigger renewed pressure on international crude prices and potentially affect petrol prices in oil-importing and oil-producing markets.

Dangote yet to comment

The Dangote Group had yet to respond to enquiries regarding the latest price increase at the time of the report.

The latest adjustment means consumers and downstream operators will be watching developments closely as the new N1,200 per litre gantry price takes effect.