Tag: Dangote Refinery

After briefly deciding to price the product in US dollars, the Dangote Petroleum Refinery has started selling Premium Motor Spirit (PMS), also known as gasoline, in naira.

The new price is N1,215 per litre, but the business has also raised the ex-depot price by N140 per litre.

Only one week has passed since the 650,000-barrel-per-day refinery implemented dollar-based pricing and halted truck fuel loading.

This action decreased fuel supply, generated uncertainty in Nigeria’s downstream oil industry, and led to a dramatic increase in depot prices nationwide.

In a notice sent to marketers by its commercial department, Dangote Refinery confirmed that all local petrol purchases would once again be transacted in naira, with the updated pricing taking immediate effect.

Under the revised structure, the gantry price rose from ₦1,075 per litre to ₦1,215 per litre, representing a 13 per cent increase, while the coastal loading price also climbed from ₦1.44 million per metric tonne to about ₦1.60 million per metric tonne.

The refinery informed customers that any petrol volumes not yet loaded would be billed at the new price and encouraged marketers to begin placing fresh orders under the revised arrangement.

Industry information platform Petroleumprice.ng confirmed that the refinery had officially reverted to naira transactions, with its Chief Executive Officer, Jeremiah Olatide, stating that marketers had already been notified of the resumption of naira payments.

The refinery had earlier suspended both gantry and coastal loading on July 15 when it switched to dollar pricing for refined petroleum products.

During that period, many independent marketers struggled to purchase fuel due to difficulty accessing the foreign exchange required to complete transactions.

This pushed many of them toward private fuel depots, where prices rose swiftly amid limited supply, with the average ex-depot price reportedly climbing from about ₦1,075 per litre to roughly ₦1,275 per litre within days.

Industry experts had cautioned that sustaining dollar-based sales would place further strain on Nigeria’s foreign exchange market, noting that based on the country’s estimated daily petrol consumption of about 50 million litres.

Marketers would need roughly 40 million US dollars daily, or more than 14 billion dollars annually, to keep purchasing petrol from the refinery.

Dangote Refinery had earlier explained that its temporary shift to dollar pricing was due to inadequate crude oil supply under the Federal Government’s naira-for-crude arrangement, which forced it to source additional crude from the international market using dollars, thereby raising its operating costs.

Following concerns raised by petroleum marketers and industry stakeholders, the Federal Government intervened and opened discussions with the Dangote Group regarding the future of the naira-for-crude initiative.

Although petrol is now being sold in naira again, the elevated ex-depot price means filling stations may still adjust pump prices upward in the coming days.

Petrol was already retailing at around ₦1,300 per litre in Lagos and several other cities as of Wednesday, as global oil prices hovered near 94 dollars per barrel amid renewed tensions in the Middle East.

Market analysts believe the return to naira payments should ease fuel distribution and reduce supply challenges.

They, however, warn that unless international crude oil prices decline or competition increases, motorists could continue facing higher fuel prices in the coming weeks.

The Dangote Petroleum Refinery has raised its Premium Motor Spirit (PMS) gantry price by ₦101, increasing the ex-depot rate from ₦774 to ₦875 per litre—a development that may prompt fresh fuel price adjustments across the country.

A senior official at the refinery confirmed the development to The PUNCH on Monday, attributing the upward review to recent volatility in global crude oil prices.

“Yes, the price has been reviewed. The new gantry price is now ₦875 per litre from ₦774. The review became necessary due to changes in global crude fundamentals and replacement costs,” the official said.

Checks on petroleumprice.ng showed that the revised gantry price had already been reflected, signalling a shift in downstream pricing benchmarks.

The price adjustment followed the refinery’s earlier decision to suspend petrol loading operations effective midnight on March 2, 2026, after international crude oil prices surged past the $80 per barrel mark overnight.

Industry data indicated that Premium Motor Spirit loading stopped exactly at midnight, halting product lifting and the issuance of Proforma Invoices – a clear sign that fresh transactions were temporarily paused.

However, the suspension applied strictly to petrol, as Automotive Gas Oil, popularly known as diesel, continued loading.

The development also prompted a ripple effect across the downstream sector, with several private depot owners reportedly suspending petrol sales during the trading day.

“Several depot owners suspended PMS sales because of the crude rally. The market is already factoring in risk premiums. Nobody wants to sell below replacement cost,” a downstream operator said.

Market watchers say such coordinated pauses often precede price realignments, as operators adjust to global crude movements and projected replacement costs.

The current volatility in the oil market has been linked to heightened geopolitical tensions between the United States and Iran, raising fears of supply disruptions — particularly around the strategic Strait of Hormuz.

Energy analysts warn that sustained hostilities in the Middle East could disrupt global supply chains, push up freight and insurance premiums, and increase import and refining costs – even as Nigeria ramps up local refining capacity.

Five energy experts, in separate interviews with The PUNCH, cautioned that petrol and diesel prices in Nigeria could rise further if crude oil climbs beyond $90 per barrel.

With the gantry price now at ₦875 per litre, marketers are expected to adjust pump prices accordingly in the coming days, potentially pushing retail prices closer to the ₦1,000 mark in some locations.

The Dangote Petroleum Refinery has begun the nationwide sale of premium motor spirit (PMS), commonly known as petrol, at ₦739 per litre at all MRS Oil Nigeria Plc filling stations.

The refinery said the move marked a major milestone in its effort to make petrol more affordable and stabilise Nigeria’s downstream petroleum sector.

Dangote refinery stated that with more than 2,000 MRS outlets nationwide, the new pump price is expected to be implemented across all stations, ensuring consumers benefit from the reduction across the country.

In a statement on Sunday, Dangote Refinery said: “We commend MRS and other marketers who have demonstrated patriotism by reflecting the reduced price at the pump.

“We call on others to join this effort as a show of support for Nigeria’s economic recovery.”

The refinery noted that the festive season has historically been associated with fuel scarcity and sharp price increases, but said its intervention had altered the usual trend.

“Backed by a guaranteed daily supply of 50 million litres, this initiative fundamentally alters the supply dynamics during the holiday period.”

According to the refinery, large-scale local refining is helping Nigeria reduce its exposure to volatile global markets, conserve foreign exchange, stabilise the naira and strengthen energy security.

It added that sustained price moderation and steady supply were already providing relief to households, businesses and transport operators nationwide.

The company, however, warned against attempts by “unscrupulous” operators to create artificial scarcity in response to the price reduction.

“Any attempt to create artificial scarcity or manipulate supply to frustrate recent price reductions is unpatriotic and unacceptable,”the statement read.

The refinery urged regulatory agencies to remain vigilant and take firm action against such practices, especially during the festive period.

Dangote refinery also called on consumers to avoid buying petrol at inflated prices when cheaper alternatives are available.

“We encourage Nigerians to avoid buying PMS at excessively high prices when they can access locally refined fuel at ₦739 per litre from over 2,000 MRS stations nationwide,” it said.

Consumers were advised to report any MRS station selling above the approved price by calling 0800 123 5264.

Dangote Refinery has significantly lowered its ex-depot petrol price to strengthen its competitive edge over the Nigerian National Petroleum Company Limited and other filling stations across Nigeria.

Checks on Petroleumpriceng on Friday morning showed that Dangote Refinery’s ex-depot price dropped to N699 per litre, down from N828 per litre.

This represents a N129, or 15.58 per cent, reduction in petrol prices.

The latest adjustment marks approximately the 20th price review this year and comes ahead of the Yuletide season.

Dangote Refinery’s ex-depot price review follows announcements by the Nigerian National Petroleum Company and fuel filling stations of at least two price reductions in the past three weeks, pushing the retail price between N915 and N937 per litre in Abuja.

Dangote Refinery has condemned the directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ordering its members to halt gas and crude supply to the facility, describing the move as an act of economic sabotage.

The oil company made this known in a statement on Saturday.

This comes after PENGASSAN hit back at Dangote Refinery for sacking over 800 workers belonging to the union.

In a swift response to the demand for reversal of the sack, PENGASSAN had asked its members across the country to cut off gas and crude supply to the 650,000-barrel-per-day refinery.

However, in a lengthy statement, Dangote Refinery described the move as a “criminal and illicit affront” against what it described as a national asset.

“The follow-up question is, in whose interest and on whose behalf is PENGASSAN directing and intending to inflict such anarchic and criminal disruption upon the Nigerian society and persons living in Nigeria? Most certainly not in the interest of the Nigerian State and/or the Nigerian public and citizens.

“This is also economic sabotage against the Nigerian State at multiple levels.

“Dangote Refinery is the only refinery of its type in Africa and ordinarily should be the pride of Nigerians and the government. Indeed qualifies as a strategic national asset. An irreparable injury to the Dangote Refinery, such as PENGASSAN has directed, constitutes a national embarrassment to all of us.

“The directive is a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery to contemplate investing in Nigeria’s oil and gas sector or generally,” the company said.

It further urged the Federal Government to call the union to order.

“We are, by this write-up, drawing the attention of the Federal Government and its security and law enforcement agencies – as well as all other levels of government in Nigeria – to this criminal, lawless, reckless and irresponsible conduct of PENGASSAN and calling on them – the Federal Government and its agencies, in particular – to call the Association to order.”

Meanwhile, the company remained silent on what PENGASSAN termed an unjust treatment meted out to Nigerian workers through arbitrary termination of appointment.

Recall that PENGASSAN had vowed to take all necessary action to ensure that the ill-treatment against Nigerian workers by the refinery is addressed.