Dangote Refinery Raises Petrol to N1,175/Litre in Fourth Price Adjustment
Nigeria's Dangote Refinery has increased Premium Motor Spirit ex-depot prices to N1,175 per litre, marking the fourth adjustment and intensifying inflation concerns as transport and goods costs are expected to rise across Africa's largest economy.
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Dangote Petroleum Refinery has increased the ex-depot price of Premium Motor Spirit (PMS) to N1,175 per litre, according to notices sent to petroleum marketers and depot operators on Monday. The adjustment represents the fourth price modification since the 650,000 barrel-per-day facility began domestic fuel distribution, with three increases occurring within a single week, according to Naija News.
The pricing escalation comes as the refinery, which commenced operations in late 2023, has become a critical supplier to Nigeria's domestic market. The ex-depot price—the rate at which marketers purchase fuel directly from the refinery—typically translates to retail pump prices N50-100 higher once distribution costs and margins are factored in. Peoples Gazette reported that the increment notice was distributed nationwide to petroleum marketing companies on March 9.
The rapid succession of price increases raises immediate concerns about Nigeria's inflation trajectory, which reached 34.8% year-on-year in December 2024 according to the National Bureau of Statistics. Transport costs account for a significant component of Nigeria's consumer price index, and petrol price movements directly impact logistics expenses across sectors. "The cost of goods and services across Nigeria is expected to increase further," Naija News stated, reflecting widespread concern about the knock-on effects on household budgets and business operating costs.
The pricing adjustments occur against a backdrop of naira depreciation and Nigeria's removal of fuel subsidies in May 2023, which initially pushed pump prices from approximately N195 to over N500 per litre. The Dangote Refinery's pricing autonomy reflects the deregulated market structure implemented under President Bola Tinubu's administration, though the facility's dominant market position—as Nigeria's largest refining capacity—means its pricing decisions have outsized economic impact. The refinery has not publicly disclosed the factors driving the successive increases, though global crude oil price movements and foreign exchange pressures on input costs typically influence domestic fuel pricing in import-dependent markets.