The Dangote Petroleum Refinery has again increased the price of premium motor spirit, petrol, despite international crude oil prices remaining below the levels recorded during the earlier surge in March.
The latest adjustment, which takes the gantry price to N1,350 per litre, represents the highest price announced by the refinery since it began operations in 2024.
The new rate, which came into effect on Saturday, represents an N85 increase from the previous price of N1,265 per litre. The hike occurred as Brent crude traded at about $104 per barrel, following a sharp rise in global oil prices amid supply disruptions associated with the conflict involving the United States and Iran.
The latest adjustment is noteworthy because the refinery’s petrol gantry price has now surpassed the level recorded when international crude oil prices reached their recent peak.
Findings by our correspondent indicate that Dangote Refinery’s gantry price remained below N1,300 per litre when Brent crude climbed beyond $115 per barrel during the earlier oil price rally. At that period, the naira was also trading slightly stronger against the dollar compared with its current position.
With Brent now around $104 per barrel, below its previous peak, Dangote Refinery has raised its petrol gantry price to N1,350 per litre. This means the facility is currently charging a higher ex-depot or gantry price for petrol despite crude oil being cheaper than during the previous price surge.
The comparison is significant because crude oil serves as the refinery’s primary feedstock, while movements in the naira-dollar exchange rate also influence the cost of crude purchases and refined petroleum products.
The latest increase represents the fourth adjustment to the refinery’s petrol gantry price since August 21, with the rate rising from N1,165 to N1,350 per litre within 22 days.
The first adjustment saw the price move from N1,165 to N1,185 on August 21. It was increased by another N15 to N1,200 on August 26, before rising by N65 to N1,265 on August 29. Saturday’s N85 increase brought the price to its current level.
Overall, the successive increases have pushed the gantry price up by N185, representing a 15.9 per cent increase in less than one month.
In a circular issued by the Group Commercial Operations of Dangote Petroleum Refinery and Petrochemicals, the company also announced an increase in its coastal price from N1,669,545 to N1,783,530 per metric tonne.
The latest price adjustment has taken place under a different international crude oil environment compared with the period when some of the refinery’s earlier price changes were made.
Brent crude surpassed $115 per barrel during the March oil price rally following the outbreak of the US-Iran conflict. At the time, the international benchmark was considerably higher than its current level, while Dangote Refinery’s petrol gantry price stood at N1,275 per litre.
By June, Brent crude had dropped below $80 per barrel, reaching $78.96 on June 16, as hopes of a possible resolution to the conflict helped ease fears over disruptions to global oil supplies.
Dangote subsequently lowered its petrol gantry price to N1,175 per litre in June, although the reduction was significantly below expectations. A refinery official had explained that additional reductions were possible but pointed out that the facility was still processing expensive crude acquired during the period of elevated oil prices.
The explanation indicated that declining international crude prices did not immediately result in a corresponding reduction in refined-product prices because the refinery still had higher-cost crude in storage.
“When international crude prices fell to around $80 per barrel in June, the refinery did not immediately reduce its petrol price in line with the decline. The explanation given at the time was that the refinery still had significant volumes of expensive crude bought when international oil prices were higher.
“Now that crude prices have risen again, the refinery has moved quickly to increase its petrol gantry price, pushing it from N1,265 to N1,350 per litre.
“That’s big. This has created a contrast in the way changes in crude prices are reflected in petrol prices: when crude prices fell, the refinery pointed to its old and expensive crude stocks as a reason for delaying price reductions; now that crude prices have risen, it has increased its petrol price even though the benchmark remains below its previous peak,” a marketer said, seeking anonymity due to the sensitivity of the matter.
However, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the refinery was simply responding to movements in global oil prices. He warned that petrol could rise to N2,000 per litre if the Federal Government failed to intervene.
Ukadike called on the Federal Government to make crude available to domestic refineries at a price separate from the international market rate.
The refinery’s pricing decisions have consequently become an important benchmark for other suppliers and marketers, as changes in its gantry price are often followed by adjustments in depot and retail petrol prices nationwide.
Following the latest increase, some filling stations began reviewing their pump prices, with petrol selling for between N1,380 and N1,400 per litre in some locations.
The latest price adjustment also comes a day before Dangote Refinery’s initial public offering, IPO, which opens to investors today, September 14.
The refinery is offering 4.1 billion ordinary shares at N525 per share through the IPO, with the offer capable of raising approximately N2.15tn if fully subscribed. The offer will run from September 14 to October 13, while trading in the shares is expected to commence on the Nigerian Exchange in November.
The IPO is projected to rank among Africa’s largest share offerings and is primarily targeted at retail investors. The company said the proceeds will be used to finance its expansion programme, including plans to double refining capacity from the current 700,000 barrels per day to 1.4 million barrels per day.
The refinery has also posted a significant improvement in its financial performance ahead of the share offering.
It recorded revenue of about N19.13tn and profit after tax of approximately N2.50tn in the first half of 2026, compared with a loss recorded during the corresponding period in 2025.
The stronger performance has come alongside higher refinery utilisation and favourable conditions in the international refined-products market.
The facility, which was constructed at an estimated cost of $20bn, commenced operations in 2024 and has since emerged as a major supplier of refined petroleum products to Nigeria and other African markets.
Meanwhile, Dangote Refinery has continued to face concerns over the availability of locally sourced crude. In July, the company began pricing some of its fuel products in US dollars.
A spokesperson for Dangote attributed the decision to challenges in securing adequate crude under the naira-for-crude arrangement, as well as the disparity between purchasing crude in dollars and selling refined products in naira.
