Nigerians are set to face another round of economic hardship following a fresh increase in the price of Premium Motor Spirit (PMS), popularly known as petrol, by the Dangote Petroleum Refinery.
The refinery has raised its petrol gantry price by 6.7 per cent, from N1,265 to N1,350 per litre, with the new price taking effect from Saturday, September 12, 2026.
The latest increase is expected to put further pressure on the prices of transportation, goods and services, particularly in Abuja and other inland markets where petroleum products attract additional logistics and distribution costs.
In a memo to its customers announcing the adjustment, the refinery stated: “Dear valued customer, please find below the revised DPRP PMS gantry and coastal price, which is effective September 12th, 2026.”
The refinery also directed customers with existing loading arrangements to return their Automated Truck Certificates (ATCs) for repricing before they could resume loading.
It said: “You are advised to return all ATCs for repricing and a new volume contract will be issued for immediate loading resumption.”
The increase means marketers sourcing petrol from the refinery will now incur higher acquisition costs, a development that could trigger another round of pump-price increases as operators factor in the new cost, transportation expenses and profit margins.
The latest Energy Bulletin by the Industry Competency Centre, Lagos, showed that the seven-day average Brent crude price stood at $98.74 per barrel, while Bonny Light averaged $104.65 per barrel.
The bulletin also put the seven-day average exchange rate at N1,323.12 to the dollar, while the seven-day average domestic petrol price stood at N1,308.33 per litre and diesel at N1,855.97 per litre.
With coastal ex-depot petrol prices currently ranging between N1,265.50 and N1,285 per litre, consumers in inland locations are expected to bear higher costs because of additional trucking and distribution expenses.
Industry estimates indicate that petrol could sell for between N1,400 and N1,500 per litre in Abuja, with prices potentially rising above N1,500 at some filling stations, depending on supply costs and marketers’ margins.
The situation could be even more severe in northern cities located farther from coastal supply centres. Petrol prices in Kano, Kaduna, Jos and other inland markets could rise to between N1,450 and N1,600 per litre, depending on availability, transportation costs and supply routes.
Diesel users are also expected to remain under pressure. According to the bulletin, Lagos diesel ex-depot prices currently range between N1,790 and N2,100 per litre, meaning inland prices could rise to between N2,100 and N2,400 per litre or higher after transportation and other distribution costs are added.
The latest development further highlights the impact of logistics on Nigeria’s deregulated downstream petroleum market, where the cost of transporting products from coastal supply centres to inland locations significantly affects retail prices.
While Lagos, Port Harcourt and Warri have relatively easy access to refineries, terminals and other petroleum supply centres, Abuja and several northern markets depend heavily on products transported over longer distances.
The pressure on consumers could intensify if crude oil prices remain above $100 per barrel, the naira weakens further or transportation costs increase.
Conversely, a sustained decline in crude oil prices, a stronger naira and lower logistics costs could ease the pressure on petroleum consumers and moderate prices across the country.
