RETAIL petrol prices across Nigeria may soon climb to between N980 and above N1,000 per litre following a fresh increase in the gantry price of Premium Motor Spirit (PMS) by the Dangote Petroleum Refinery.
Industry sources confirmed to News Point Nigeria that the refinery has raised its ex-depot price from N774 to N874 per litre, a N100 jump that marketers say will inevitably be transferred to consumers depending on location and logistics costs.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, told journalists that retail prices could soon approach or exceed the N1,000 threshold.
“Following the increase by Dangote, the pump price will likely range between N980 and over N1,000 per litre, depending on location and logistics. This is largely the effect of the recent hike in global crude oil prices,” Ukadike stated.
A senior official at the refinery attributed the adjustment to volatility in international crude markets and rising replacement costs.
“Yes, the price has been reviewed. The new gantry price is now N874 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official explained.
Checks on petroleumprice.ng confirmed that the updated rate had already been reflected across the downstream value chain.
In a notice to marketers, the refinery wrote: “Dear Valued Customer, we are pleased to inform you that PMS is currently available for purchase. Please be informed that the current price is N874 per litre. Thank you for choosing Dangote.”
The increase followed a temporary suspension of petrol loading operations at the refinery effective midnight on March 2, 2026, after global crude oil prices surged above $80 per barrel. While petrol loading paused, diesel supply continued uninterrupted.
Several private depot owners nationwide also suspended PMS sales to reassess replacement costs.
“Several depot owners halted PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator said.
Global oil prices have been rattled by escalating tensions involving the United States, Israel, and Iran, heightening fears of supply disruptions around the strategic Strait of Hormuz.
Although the Strait of Hormuz remains open, shipping activity has reportedly declined sharply due to rising security risks and insurance premiums. The waterway accounts for roughly 20 percent of global daily oil consumption and nearly 30 percent of total seaborne crude trade.
Major global financial institution JPMorgan Chase has projected that Brent crude could climb as high as $120 per barrel if hostilities persist and oil flows are significantly disrupted.
Energy analysts warn that sustained instability in the Middle East could elevate shipping, insurance, and refining costs — pressures that may continue to push up petrol and diesel prices in Nigeria despite expanding domestic refining capacity.
Even as consumers brace for higher pump prices, President of the Dangote Group, Aliko Dangote, has unveiled ambitious plans to deepen Nigeria’s industrial base.
In a recent interview with The New York Times, Dangote emphasised that refining is only one component of a broader strategy that includes investments in electricity generation, steel production, and port infrastructure.
“We have to industrialise Africa,” Dangote said, underscoring the importance of expanding power generation to support manufacturing and economic growth.
According to the company, the Dangote Petroleum Refinery & Petrochemicals facility is currently producing about 650,000 barrels of refined products daily, with output expected to double within three years.
The refinery reportedly employs about 30,000 workers, roughly 80 percent of them Nigerians. Expansion plans across new sectors are projected to increase total employment within the group to approximately 65,000.
Dangote also disclosed plans to list shares of the refinery on the Nigerian stock market to broaden local participation.
While Nigeria’s refining capacity has expanded significantly with the coming on stream of the Dangote facility, fuel pricing remains sensitive to international crude benchmarks and geopolitical risks.
Energy analysts note that the N874 per litre gantry price effectively sets the stage for retail prices that could cross N1,000, particularly if crude oil continues its upward trajectory.
For consumers, the coming weeks may determine whether the current adjustment is temporary or the beginning of another prolonged fuel price cycle driven by global oil volatility.