Dangote Refinery raises petrol gantry price to N1,350 amid global oil surge
The Dangote Petroleum Refinery has increased the wholesale price of Premium Motor Spirit (PMS), commonly known as petrol, by N85 per litre, pushing its gantry price from N1,265 to N1,350 per litre.
The latest adjustment comes amid renewed pressure from rising international crude oil prices and higher replacement costs for refined petroleum products. Brent crude has recently climbed above $107 per barrel, increasing the cost implications for refiners and fuel marketers.
The latest increase represents another significant movement in Dangote Refinery’s petrol pricing in recent months, underscoring the sensitivity of Nigeria’s downstream market to developments in the international oil market.
Another major adjustment in petrol pricing
Dangote Refinery has adjusted its petrol price several times this year as global crude prices and market conditions have shifted.
In August, the refinery increased its gantry price by N20 to N1,185 per litre after previously reducing the price by N50. It subsequently raised the price to N1,200 and then N1,265 per litre.
The refinery had also reduced its price to N1,175 per litre in June following a decline in international crude prices as tensions in the Middle East eased.
The latest N85 increase therefore marks a renewed upward movement after the series of reductions and smaller adjustments recorded earlier in the year.
Global oil prices drive renewed pressure
The latest increase comes against a backdrop of heightened volatility in international energy markets.
Rising crude prices increase the cost of producing and replacing refined petroleum products, putting pressure on domestic fuel prices in countries such as Nigeria that remain exposed to international market movements.
Recent geopolitical disruptions have also tightened global fuel supplies. Dangote Refinery’s management has said global fuel shortages could persist as damage to refining infrastructure in the Middle East, high refinery utilisation and the need to rebuild inventories continue to constrain supply.
The refinery has benefited from the stronger global refining environment, recording a $1.82 billion after-tax profit in the first half of 2026, compared with a $476 million loss for the previous full year.
Impact on Nigerian fuel marketers
The increase in the refinery’s gantry price is likely to place additional pressure on fuel marketers, particularly those purchasing directly from the refinery.
Gantry prices represent the cost at which products are lifted from the refinery, meaning marketers still have to account for transportation, storage, logistics, operating expenses and other costs before petrol reaches filling stations.
Consequently, movements in the refinery’s wholesale price can feed into downstream pump prices depending on prevailing market conditions and marketers’ margins.
For motorists and businesses already dealing with elevated transportation and operating costs, another increase in the underlying cost of petrol could add to cost pressures across the economy.
Refinery expands amid stronger global demand
The latest price adjustment comes at an important period for Dangote Refinery as the company prepares for a major expansion.
The refinery is targeting an increase in processing capacity from about 700,000 barrels per day to 1.4 million barrels per day by 2029, as part of a reported $14.3 billion expansion programme.
The company is also preparing for an initial public offering that is expected to raise about N2.15 trillion, with the offer scheduled to run from September 14 to October 13.
The refinery’s growing role in Nigeria’s petroleum market means changes in its pricing are increasingly important to the broader downstream sector.
For consumers, however, the immediate concern will be whether the latest N85 increase at the refinery translates into higher pump prices in the coming days, particularly if international crude prices remain elevated.
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