Breaking: dangote refinery has increased petrol price again

Author: Jonadab | Date: 2026-03-13 | Publisher: DocuNews Central

Nigeria’s largest private refinery has again adjusted fuel prices upward, affecting petrol and diesel costs nationwide. Dangote Petroleum Refinery raised the ex-depot (gantry) prices of Premium Motor Spirit (PMS), commonly called petrol, and Automotive Gas Oil (diesel). This marks multiple revisions in less than two weeks as global oil markets stay volatile.

The latest price update sees petrol sold at about ₦1,175 per litre at the gantry. This revision reflects domestic cost pressures and international crude price trends, which have remained elevated in recent weeks. Marketers in major Nigerian cities have responded by raising retail pump prices to roughly ₦1,200–₦1,300 per litre in several states. (dailytrust.com)

Diesel prices also rose, with the refinery setting the new price around ₦1,620 per litre at ex-depot level. These figures represent a sharp increase compared with the price at the beginning of March, when petrol gantry prices were significantly lower. This series of increases has heightened concerns among consumers and businesses about cost inflation across sectors. (businessday.ng)

Domestic Supply and Market Dynamics

The refinery’s decision to raise prices comes amid ongoing supply assurances from management. Dangote Petroleum Refinery, located in the Lekki Free Trade Zone, operates at one of the highest capacities in Africa and supplies a significant share of Nigeria’s fuel demand. Despite this scale, the refinery remains subject to global crude oil price trends, which influence its cost base. (channelstv.com)

Energy analysts say the company’s pricing reflects a mix of operational costs, foreign exchange rates, and crude market volatility. Recent geopolitical tensions in the Middle East have tightened global energy markets and pushed benchmark oil prices higher. These factors have passed through to refined products, even for locally refined petrol and diesel. (channelstv.com)

The refinery’s managing director has explained that multiple regulatory and operational costs also feed into pricing decisions. According to the company, fees from various government agencies contribute to the overall cost structure, which then influences the ex-depot price offered to marketers. (thecable.ng)

Impact on Retail Prices

Independent marketers across Nigeria have adjusted retail prices in response to the refinery’s gantry price increase. In Lagos, Ogun and other states, petrol is selling at roughly ₦1,200–₦1,300 per litre at filling stations. These figures vary by location, depending on transportation costs and local demand conditions. (tribuneonlineng.com)

Transport and logistics costs add to the final price consumers pay at the pump, especially in regions far from the refinery’s base in Lagos. Many motorists have reported rising transportation costs as fuel becomes increasingly expensive. These price shifts may reverberate through the economy, raising costs for goods and services that rely on road transport. (punchng.com)

In some states, consumers have reported prices as high as ₦1,300 per litre. The increase reflects both the refinery’s pricing formula and the broader dynamics of supply and demand. Industry groups have noted that diesel pricing also plays a role in logistics and transportation pricing across the country. (dailytrust.com)

Geopolitical Pressure and Market Forces

Global geopolitical developments appear to be a significant driver behind fuel price volatility. Conflicts affecting major oil routes, such as the Strait of Hormuz, have increased the cost of crude shipments and pressured refining margins worldwide. This global energy context influences local pricing, even for a refinery that aims to reduce Nigeria’s dependence on imported fuel. (channelstv.com)

Also read Dangote Refinery Cuts Petrol Prices Nationwide.

Experts say Nigeria’s fuel pricing still responds to broader global oil trends, despite efforts to enhance domestic refining. Local production has reduced reliance on imported gasoline, but fluctuations in global crude benchmarks continue to affect domestic costs. Authorities are promoting local refining and have recently taken steps to prioritize domestic fuel production under the Petroleum Industry Act. (reuters.com)

Economic Effects and Sector Response

Business groups and industry associations are tracking the inflationary effects of higher fuel prices. Rising petrol costs often push up transportation charges, which then influence food and commodity prices. Several business associations have warned that ongoing fuel price increases can contribute to inflationary pressures in Nigeria’s economy. (punchng.com)

Some stakeholders have expressed concern that continued fuel price volatility could affect household budgets and small business operations. Motorists and transport unions have already called for more stable pricing, citing the strain on commuting and logistics costs. At the same time, energy sector officials argue that stable supply levels from local refineries could mitigate some price swings, even if costs remain high. (thisdaylive.com)

Outlook for Fuel Prices in Nigeria

Market watchers are cautious about future fuel price trends. Global crude oil prices have not shown signs of substantial decline, and regional demand for petrol and diesel remains strong. At the same time, continued geopolitical tensions could keep upward pressure on energy costs. Some analysts suggest that pump prices may rise further if cost and supply dynamics do not stabilize soon. (guardian.ng)

Efforts to expand refining capacity and improve domestic fuel distribution could influence the long-term pricing environment. However, short-term economic pressures appear likely to keep prices elevated. Nigeria’s fuel market remains sensitive to global and local factors, including exchange rate shifts and import dynamics, which will be closely watched by policymakers and industry participants alike.