The Dangote Petroleum Refinery has increased its gantry price for Premium Motor Spirit, commonly known as petrol, from N1,185 to N1,200 per litre, effective Wednesday, August 26, 2026.
The latest adjustment means Nigerians could face another increase in the cost of petrol at filling stations as marketers begin to reflect the new depot price in their retail operations.
The refinery communicated the new price to its customers in an official notice issued on Tuesday by its Group Commercial Operations department.
The communication, titled “PMS Price Change Communication (N1,185 per Litre To N1,200 Per Litre),” directed customers to take note of the revised gantry and coastal delivery prices.
Under the new pricing arrangement, the coastal price increased from N1,562,265 per metric tonne to N1,582,380, while the gantry price moved upward by N15 per litre.
The refinery also instructed customers to return existing Authorisation to Collect documents for repricing before new volume contracts are issued to enable immediate loading to resume.
The latest increase comes only days after Dangote Refinery raised its petrol gantry price from N1,165 to N1,185 per litre, with that previous adjustment taking effect from midnight on August 21.
The back-to-back price adjustments have raised concerns among motorists, transport operators and businesses already struggling with elevated energy and operating costs.
What makes the latest increase particularly notable is that it comes at a time when international crude oil prices have been declining rather than rising.
Data cited by Punch showed West Texas Intermediate crude trading at $82.13 per barrel on Tuesday after falling by $2.88, representing a 3.39 per cent decline.
Brent crude also dropped to $88.37 per barrel after losing $3.80, equivalent to a 4.12 per cent decline, while Murban crude fell to $92.71 per barrel.
The decline in crude prices would ordinarily raise expectations of cheaper refined petroleum products, making the timing of the Dangote refinery’s latest adjustment a major talking point in Nigeria’s downstream petroleum market.
However, crude prices are only one component of the cost structure affecting refined petroleum products, with factors such as crude sourcing, exchange rates, logistics, transportation and market conditions also influencing pricing.
The situation is particularly significant because the Dangote Refinery does not rely exclusively on locally produced crude, with Reuters reporting that imported crude accounts for about 30 to 40 per cent of its crude intake.
The refinery has faced challenges securing sufficient Nigerian crude at competitive prices, despite Nigeria being a major oil-producing country.
Reuters reported that some Nigerian crude is priced against international benchmarks such as Brent, while Dangote has also sourced crude from countries including the United States and Guyana.
These sourcing challenges can affect the refinery’s production costs and ultimately influence the prices at which petroleum products are supplied to marketers.
The latest increase is also coming amid continued volatility in global energy markets linked to geopolitical tensions involving Iran and the wider Middle East.
According to Punch, the decline in oil prices followed market reactions to the latest United States sanctions against Iran, which investors viewed as less threatening to global oil supplies than a potential military escalation.
Despite the recent decline, analysts have warned that the oil market remains vulnerable to another sharp price increase if the conflict escalates and disrupts crude supplies or major shipping routes.
The Strait of Hormuz remains particularly important because it handled roughly one-fifth of global oil consumption before the current conflict, making any disruption to the waterway a major risk for international energy markets.
For Nigerian consumers, the immediate concern is whether the N15 increase at the refinery will translate into another pump-price adjustment across filling stations.
Punch reported that petrol could return to an average retail price of about N1,250 per litre as marketers factor the new depot price into transportation and other downstream costs.
The development could place additional pressure on household budgets and businesses because petrol remains a major input for transportation, power generation and several commercial activities.
It could also reignite discussions about the benefits Nigerians are receiving from increased domestic refining capacity as consumers continue to monitor petrol prices despite the availability of locally refined fuel.
The Dangote Refinery was established partly to reduce Nigeria’s dependence on imported refined petroleum products and strengthen domestic energy security.
However, the latest adjustment demonstrates that local refining does not completely insulate the Nigerian market from international crude prices, crude sourcing challenges and wider global energy-market pressures.
The Dangote Group had not responded to Punch’s enquiries regarding the latest price increase as of the time of publication.
For now, motorists and businesses are likely to watch filling-station prices closely as marketers respond to the new N1,200-per-litre gantry price.