The Dangote Petroleum Refinery has restarted the distribution of Premium Motor Spirit (PMS), commonly referred to as petrol, after a one-week suspension, now selling it at an increased ex-depot price of ₦850 per litre, compared to the previous rate of ₦820.
A recent 3.66% increase in fuel prices has reignited nationwide concerns about an impending surge in pump prices across Nigeria. This uptick, reported by industry tracking platform PetroleumPriceNG and cited by The Punch, became effective on Thursday, coinciding with the resumption of fuel loading at the Dangote Refinery, which boasts a capacity of 650,000 barrels per day.
The price change follows a temporary suspension in loading operations at the refinery the previous week—a disruption that created ripples across Nigeria’s already fragile downstream petroleum sector. The brief halt not only heightened uncertainty but also led to price instability and supply chain interruptions, impacting fuel availability and distribution in several regions.
An internal directive titled “Important Update on DPRP Collection Account for PMS” had been circulated to petroleum marketers, instructing them to suspend all payments to the refinery’s gantry account. This abrupt directive resulted in a halt in product loading operations, catching many industry players off guard.
“Effective immediately, all payments to the DPRP collection account for PMS gantry should be suspended,” the advisory read. The message caused confusion and speculation within the market until normal loading activities resumed later in the week.
Although the Dangote Group has yet to issue an official statement regarding the price increase, several industry stakeholders believe the change is linked to fluctuations in the global crude oil market. It is believed that approximately 50% of the crude oil processed at the Dangote Refinery is sourced from the United States, making its operations highly susceptible to changes in international oil prices. This reliance on imported feedstock is seen as a key factor influencing the recent rise in ex-depot prices.
Until recently, the Dangote Refinery played a disruptive role in Nigeria’s fuel market by driving down prices, forcing importers and competitors to align their pricing with its offerings. This strategy had made Dangote a key player in the push for more affordable petroleum products in the country.
However, this advantage appears to have diminished in recent weeks. Competing importers, notably Aiteo and Menj, have begun offering more competitive depot prices—as low as ₦815 per litre—prompting widespread price volatility in the market. These developments have somewhat undermined Dangote’s market dominance.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the downward pricing trend among depot owners. “Some depots are selling at ₦815, others at ₦817, while Dangote’s rate is ₦820 per litre. Meanwhile, the NNPC is still maintaining a higher rate of ₦825 and has not adjusted its prices yet,” he stated.
Adding to the complexity of the market, several filling stations across Nigeria have begun selling petrol at below ₦860 per litre, creating more pressure on Dangote-affiliated marketers like MRS and Heyden, which have continued to maintain pump prices ranging from ₦865 to ₦875 in areas such as Lagos and Ogun states.
Furthermore, recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has revealed a sharp increase in petroleum imports, intensifying market competition. According to figures presented to the Federation Accounts Allocation Committee (FAAC) for June 2025, imports accounted for 71.38% of Nigeria’s daily fuel consumption in May and June. In contrast, the Dangote Refinery contributed only 28.62% of the total fuel supply during that period.
This growing dependence on imports, despite the operational capacity of the Dangote Refinery, raises questions about pricing sustainability, market efficiency, and the broader dynamics of fuel distribution in Nigeria. As stakeholders monitor these developments, consumers remain concerned about the potential for further pump price increases amid continued volatility and competition within the downstream petroleum sector.
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