Retail prices of Premium Motor Spirit (petrol) across Nigeria may soon rise to between N980 and over N1,000 per litre following a fresh hike in the gantry price by the Dangote Petroleum Refinery.
Industry sources disclosed that the refinery increased its gantry price from N774 to N874 per litre, a development attributed to rising global crude oil prices and volatility in the international market.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that the new pricing structure would inevitably push up pump prices nationwide.
“Following the increase by Dangote, the pump price will likely range between N980 and over N1,000 per litre, depending on location and logistics. This is largely due to the recent surge in global crude oil prices,” he said.
A senior refinery official also confirmed the adjustment, explaining that the review became necessary due to changing global crude fundamentals and higher replacement costs. In a notice to marketers, the refinery announced that PMS was available for purchase at the new rate of N874 per litre.
The increase came shortly after the refinery temporarily suspended petrol loading operations from midnight on March 2, 2026, amid crude prices rising above $80 per barrel. While PMS loading was paused, diesel supply continued.
Several depot owners reportedly halted petrol sales to reassess costs, citing fears of selling below replacement value as global oil prices rallied.
The price surge has been linked to escalating tensions between the United States and Iran, with growing concerns about possible disruptions around the strategic Strait of Hormuz—a vital corridor for global oil shipments.
Shipping activity through the strait has reportedly dropped significantly due to rising security risks and higher insurance premiums. The waterway handles about 20–21 million barrels of crude and petroleum products daily, representing roughly 20 percent of global oil consumption.
Investment bank JPMorgan Chase has projected that Brent crude could rise as high as $120 per barrel if prolonged conflict disrupts oil flows in the region.
On Monday, Brent crude rose sharply to $79.28 per barrel, while West Texas Intermediate climbed to $72.16, reflecting heightened geopolitical tensions.
Energy analysts warn that if crude prices cross $90 per barrel, Nigeria could witness further increases in petrol and diesel prices despite growing domestic refining capacity.
Amid the pricing adjustment, the President of the Dangote Group, Aliko Dangote, unveiled plans to expand into electricity generation, steel production, and port infrastructure as part of a long-term vision to industrialise Africa and strengthen energy security.
Dangote noted that refining is only one aspect of a broader industrial strategy aimed at reducing import dependence and boosting domestic production.
The refinery, which currently produces about 650,000 barrels of refined products daily, is expected to double its output within three years as expansion plans progress. The facility employs approximately 30,000 workers, most of them Nigerians, with projections that total group employment could rise to about 65,000 as new investments materialise.
Dangote also disclosed plans to list shares of the refinery on the Nigerian stock market to encourage wider local participation.
Industry observers say the latest petrol price adjustment underscores Nigeria’s continued vulnerability to global oil market fluctuations, even as domestic refining capacity expands. Analysts believe sustained geopolitical instability could further strain fuel prices, pushing pump rates beyond N1,000 per litre in the coming weeks.
Despite the short-term impact on consumers, experts argue that Dangote’s investments in refining, power generation, steel, and logistics could strengthen Nigeria’s long-term energy security and industrial resilience.
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