…Following Dangote’s increase, pump prices are expected to range between N980 and over N1,000 per litre, depending on location and logistics.
LAGOS, NIGERIA- The iNews Times | Dangote Petroleum Refinery has increased its gantry price, pushing the retail cost of Premium Motor Spirit (petrol) in Nigeria to potentially N980 to over N1,000 per litre, depending on location, The iNews Times reports.
The hike comes as Aliko Dangote, President of the Dangote Group, unveils plans to expand into electricity generation, steel production, and port infrastructure, aiming to industrialise Africa and bolster domestic energy security.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed the likely retail price in a Monday phone interview. “Following Dangote’s increase, pump prices are expected to range between N980 and over N1,000 per litre, depending on location and logistics. This is largely due to recent spikes in global crude oil prices,” he said.
A senior refinery official noted that the gantry price was revised from N774 to N874 per litre because of global crude volatility. “The review became necessary due to changes in global crude fundamentals and replacement costs,” the official added.
Petroleumprice.ng confirmed the adjustment along the downstream chain. In a notice to marketers, the refinery stated: “Dear Valued Customer, PMS is available for purchase at N874 per litre. Thank you for choosing Dangote.”
The increase followed a temporary halt in petrol loading at the refinery from midnight on March 2, 2026, after global crude surged above $80 per barrel. Diesel supply continued during the pause. Several depot owners also suspended petrol sales to reassess replacement costs, with one downstream operator noting, “Nobody wants to sell below replacement cost.”
Heightened global oil market volatility, linked to escalating U.S.-Iran tensions, is raising fears of supply disruptions through the Strait of Hormuz. Energy experts warn Nigeria could see further increases if crude exceeds $90 per barrel. Analysts note that prolonged Middle East hostilities could raise shipping and insurance costs, pushing up domestic fuel prices despite growing local refining capacity.
JPMorgan Chase projects Brent crude could hit $120 per barrel if conflicts continue. The bank added Gulf producers could sustain normal output for only about 25 days before storage limits force broader shutdowns.
Oil prices surged sharply after a U.S.-Israeli operation targeted Iranian missile facilities, reportedly killing Iran’s Supreme Leader, Ayatollah Ali Khamenei, and nearly 50 senior officials. Iran retaliated with missile and drone strikes on U.S. and Israeli positions across the Persian Gulf, causing multiple casualties. Shipping through the Strait of Hormuz has dropped by roughly 70%, with war risk insurance premiums rising up to 50%.
Meanwhile, Dangote Petroleum Refinery continues to operate, producing about 650,000 barrels of refined products daily, with output expected to double in three years. The refinery employs around 30,000 workers, 80% of them Nigerians, with total employment across Dangote’s expanding operations projected to reach 65,000. Plans to list the refinery on the Nigerian Stock Exchange aim to broaden local participation.
Dangote stressed that private sector investment is vital for industrialising Africa, reducing import dependence, and creating jobs. Analysts note that his expansion into electricity, steel, and port infrastructure complements downstream investments, including recent petrol pricing adjustments, signalling a holistic strategy to strengthen Nigeria’s energy sector.
The N874-per-litre gantry price sets the stage for retail rates exceeding N1,000 per litre, particularly if global tensions push crude prices higher. Dangote’s industrial ambitions reflect a broader effort to stabilise domestic fuel supply, drive industrialisation, and boost employment, reinforcing Nigeria’s manufacturing base.
