Dangote Petroleum Refinery has increased its ex-depot (gantry) price of Premium Motor Spirit (PMS) to N874 per litre, up from N774, citing volatility in global crude oil prices and higher replacement costs.
The adjustment, confirmed by a senior refinery official on March 2, 2026, took effect immediately and was communicated to marketers via official notice: “PMS is currently available for purchase at N874 per litre.” The move follows Brent crude climbing above $80 per barrel, driven by escalating military tensions involving the United States, Israel, and Iran.
Industry stakeholders warn that the refinery’s hike will quickly translate into significantly higher pump prices nationwide. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), projected retail prices could range between N980 and over N1,000 per litre, depending on location, transportation logistics, and individual dealer margins.
Olatide Jeremiah, CEO of petroleumprice.ng, offered a similar outlook, forecasting pump prices for petrol potentially reaching N1,000 per litre and diesel climbing to N1,100 per litre. He attributed the expected surge to elevated international replacement costs and persistent crude oil price increases. Jeremiah advocated for prioritising local refineries in crude allocation to shield the domestic market from global oil shocks, stating: “The only sustainable way to reduce our vulnerability to international oil price fluctuations is to ensure Nigerian refineries receive priority access to local crude.”
The price revision arrives against a backdrop of renewed geopolitical uncertainty in the Middle East, which continues to exert upward pressure on crude benchmarks and, by extension, Nigeria’s landed cost of petroleum products. With Dangote Refinery now a dominant domestic supplier, its pricing decisions exert considerable influence across the downstream sector.
In a related development offering potential relief on alternative fuels, NIPCO Gas Limited announced plans to commission 20 new Compressed Natural Gas (CNG) stations nationwide. Managing Director Nagendra Verma stated that CNG will be retailed at N380 per standard cubic metre, positioning it as a cost-competitive option amid rising liquid fuel prices.
Verma emphasised CNG’s strategic role in Nigeria’s post-subsidy energy landscape, noting: “Natural gas remains central to achieving energy security, affordability, and industrial competitiveness as the country transitions to more sustainable fuel alternatives.”
Motorists and businesses now brace for higher operating costs in the short term, while attention turns to whether sustained high crude prices and ongoing Middle East instability will force further adjustments across the downstream value chain.
