Dangote Refinery increases fuel price as global crude oil surges above $100

The Dangote Petroleum Refinery has increased its gantry price for Premium Motor Spirit (PMS), commonly known as petrol, from N1,265 to N1,350 per litre, effective Saturday, September 12, 2026.

The latest adjustment was contained in a circular issued late Friday by the Group Commercial Operations of Dangote Petroleum Refinery and Petrochemicals, notifying customers of the new prices for petrol supplied from the refinery.

The increase represents an N85 per litre adjustment and marks the fourth upward review of the refinery’s petrol gantry price since August 21, further raising concerns over the potential impact on pump prices across the country. Blueprint reports

The refinery had initially increased its gantry price from N1,165 to N1,185 per litre on August 21. Five days later, on August 26, the price was reviewed upward to N1,200 per litre before another increase to N1,265 on August 29.

With the latest adjustment to N1,350, the refinery’s petrol gantry price has risen by N185 per litre in 22 days, representing an increase of about 15.9 per cent.

The development comes amid renewed volatility in the international oil market, with rising crude oil prices exerting pressure on the cost of refined petroleum products.

Dangote adjusts coastal price

Alongside the increase in the gantry price, the refinery also reviewed its coastal delivery price for petrol.

According to the circular, the coastal price was increased from N1,669,545 to N1,783,530 per metric tonne.

The refinery directed customers to return existing Authority to Collect (ATC) documents for repricing following the adjustment.

It also stated that new volume contracts would be issued to facilitate the immediate resumption of loading by customers.

The circular advised customers requiring further clarification to contact the company’s relevant commercial operations team.

The latest development is expected to attract attention across the downstream petroleum sector, particularly among marketers and other bulk buyers who purchase products directly from the refinery.

Rising crude prices fuel concerns

The latest petrol price adjustment comes against the backdrop of elevated international crude oil prices, which have continued to influence the cost of petroleum products globally.

Brent crude has recently traded above $104 per barrel, having earlier risen beyond $107, amid heightened concerns over disruptions to global oil supplies.

The situation has been linked to the prolonged confrontation between the United States and Iran, with tensions affecting the movement of crude and petroleum products through the strategically important Strait of Hormuz.

The waterway is a major route for global energy supplies, and concerns over restricted shipping, attacks on tankers and declining oil flows have contributed to renewed pressure on international benchmarks.

As crude prices rise, refiners and petroleum suppliers generally face increased input costs, potentially influencing the prices at which refined products are sold to downstream customers.

Fourth price increase in three weeks

The frequency of the recent adjustments has become a major feature of developments in Nigeria’s downstream petroleum market.

The Dangote refinery’s price movement from N1,165 per litre on August 21 to N1,350 on September 12 means that the price has been reviewed upward four times in just over three weeks.

The first increase was N20, followed by N15, then N65, before the latest N85 adjustment.

The cumulative increase of N185 per litre highlights the extent to which changes in the global oil market can quickly filter into domestic petroleum pricing, particularly in an environment where market participants operate under deregulated pricing conditions.

For consumers and businesses, another increase in the refinery’s gantry price could raise expectations of corresponding adjustments by marketers, depending on their purchase costs, transportation expenses, margins and prevailing market conditions.

Marketers await impact on pump prices

Although the latest adjustment is the refinery’s gantry price and does not automatically translate into a uniform pump price nationwide, marketers are expected to factor the higher acquisition cost into their pricing decisions.

Pump prices can vary across locations depending on factors such as transportation, logistics, operating costs, competition and the source of supply.

The development could therefore put additional pressure on motorists and businesses that depend heavily on petrol, especially amid broader concerns over the cost of living and transportation.

Petrol remains a critical input for transportation, power generation and several small and medium-scale businesses in Nigeria, meaning changes in its price often have wider implications for the economy.

Higher fuel costs can also increase the cost of moving goods and services, with potential consequences for prices across different sectors.

Dangote refinery’s growing market influence

The latest price review further underscores the growing importance of the Dangote refinery in Nigeria’s petroleum supply chain.

With its large-scale refining capacity, the Lekki-based facility has become a major source of locally refined petroleum products, reducing the country’s dependence on imported refined products.

Its pricing decisions are therefore closely watched by petroleum marketers, industry operators and consumers, particularly as crude oil prices fluctuate in the international market.

As global oil market uncertainties persist, developments in crude prices and supply routes are likely to remain key factors influencing domestic petroleum prices in the coming weeks.

For now, the new N1,350 per litre gantry price takes effect from September 12, with downstream operators expected to assess its implications for their operations and retail pricing.

Officials of the Dangote refinery had yet to provide additional details on the latest adjustment at the time of filing the report.