Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit (PMS) to N880 per litre, triggering fresh concerns over affordability and rising volatility in the downstream oil sector.
The new rate represents a N55 hike from the previous price of N825 per litre, according to information gathered from petroleumprice.ng, a platform that tracks daily product prices, and a Pro Forma Invoice obtained by The PUNCH.
The development is expected to have a ripple effect across the fuel distribution chain, with pump prices projected to exceed N900 per litre in some parts of the country, especially in areas farther from major distribution hubs.
The price hike comes despite falling global crude oil prices. On Friday, Brent crude dropped by 3.02% to $76.47, WTI fell to $74.93, and Murban declined to $76.97. Yet, the drop in benchmarks has provided little relief due to persistent fears of sudden supply disruptions and the domestic cost challenges facing local refiners.
The Dangote Refinery, which has a capacity of 650,000 barrels per day, has blamed the rising ex-depot rate on increased reliance on imported U.S. crude, coupled with high operational costs and exchange rate instability.
On Thursday, Aliko Dangote, President of the Dangote Group, revealed that the refinery was “increasingly” sourcing crude from the United States to keep operations running.
Further investigations revealed that the refinery is projected to import 17.65 million barrels of crude oil between April and July 2025. About 3.65 million barrels have already been delivered in the past two months, as the refinery continues to receive allocations under the Federal Government’s naira-for-crude policy.
Dangote disclosed this during a briefing with the Technical Committee of the One-Stop Shop for the Sale of Crude and Refined Products in Naira, noting that the facility is still battling domestic crude supply shortages, which necessitated turning to foreign markets.
Meanwhile, the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, on Monday criticised oil marketers for what he called exploitation of Nigerians through inflated fuel prices. He argued that with falling crude prices, petrol should cost much less at the pump.
“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre,” Osifo said.
He insisted that Nigerians, who endure the burden of high fuel costs during price hikes, should also enjoy relief when market fundamentals favour lower prices.
“If Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing,” he added.
Osifo’s projection of rising prices now appears accurate in light of the latest development.
In response, marketers across Lagos and other major cities are already making pricing adjustments. Depot owners and distributors anticipate a domino effect, with new price bands emerging as many follow Dangote’s lead.
Industry sources say that many marketers had held off on price decisions since Tuesday when the refinery temporarily halted sales and suspended fresh Pro Forma Invoices (PFIs). The delay sparked speculation and allowed opportunistic pricing hikes across various depots.
With this latest increase, market watchers warn that petrol affordability may worsen, adding more pressure to an economy already grappling with inflation and currency depreciation.