The Dangote Petroleum Refinery has resumed sales of Premium Motor Spirit (PMS), commonly known as petrol, after a one-week suspension, but at a higher ex-depot price of N850 per litre, up from N820.
The 3.66% increase has sparked concerns about a possible nationwide rise in pump prices in the coming days.
According to industry monitoring portal petroleumprice.ng, as reported by Punch, the new rate took effect on Thursday when the 650,000-barrels-per-day refinery restarted loading operations.
The pause last week created uncertainty in Nigeria’s downstream petroleum sector, triggering price fluctuations and disrupting supply chains.
An internal memo titled “Important Update on DPRP Collection Account for PMS” instructed marketers to suspend payments to the refinery’s gantry account, leading to the unexpected halt in fuel loading.
“Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold,” the notice read, leaving many in the industry puzzled until operations resumed this week.
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While the Dangote Group has yet to comment on the price hike, industry analysts suggest it could be linked to global market shifts.
The refinery reportedly sources about half of its crude feedstock from the United States, making it susceptible to international oil price changes, which may be influencing the increase in ex-depot petrol prices.
Until recently, Dangote had driven competitive pricing in Nigeria’s downstream market, forcing rivals to lower petroleum costs to match its offers.
But a few weeks ago, the strategy backfired when importers like Aiteo and Menj offered depot rates as low as N815, causing price swings in the market.
“Depot owners are dropping their petrol prices. Some of them are selling N815, some are selling N817, while Dangote is selling N820.
NNPC is still selling at N825; it has not dropped its prices yet,” said Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Competition has also intensified at the retail level, with some filling stations selling petrol for less than N860 per litre.
Meanwhile, Dangote-linked marketers such as MRS and Heyden have kept pump prices between N865 and N875 in Lagos and Ogun states.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has reported a surge in petroleum imports, further complicating the market situation.
Figures submitted to the Federation Accounts Allocation Committee (FAAC) for June 2025 show that imports made up 71.38% of Nigeria’s daily petrol consumption in May and June, while the Dangote refinery supplied just 28.62% during the same period.
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Image Credit: Leadership Newspapers
