The retail price of Premium Motor Spirit (petrol) in Nigeria is projected to rise to between N980 and over N1,000 per litre due to a recent increase in the gantry price by the Dangote Petroleum Refinery. This anticipated rise comes amid ongoing volatility in the global oil market and follows an adjustment in the refinery’s pricing structure.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, confirmed the impending price hike, stating, “Following the increase by Dangote, the pump price will likely range between N980 and over N1,000 per litre, depending on location and logistics. This is largely the effect of the recent hike in global crude oil prices.”
A senior official at Dangote Refinery explained that the price adjustment was necessitated by fluctuations in the international crude oil market. The new gantry price has been set at N874 per litre, up from N774, reflecting the need to align with rising global crude fundamentals and replacement costs.
The increase follows a temporary suspension of petrol loading operations at the refinery, which took effect on March 2, 2026, as global crude prices surged above $80 per barrel. While petrol loading was paused, the supply of Automotive Gas Oil (diesel) continued without interruption.
As several depot owners halted petrol sales to reassess replacement costs, concerns over rising prices have been exacerbated by escalating geopolitical tensions, particularly between the United States and Iran. Energy experts have warned that if crude oil prices surpass $90 per barrel, further increases in petrol and diesel prices could be imminent.
JPMorgan Chase has projected that Brent crude could reach $120 per barrel if the ongoing conflict in the Middle East continues to disrupt oil flows through the Strait of Hormuz. The bank noted that Gulf producers could maintain normal output for only about 25 days before storage facilities reach capacity, potentially leading to a broader production shutdown.
On Monday, oil prices surged sharply due to a significant escalation involving the U.S., Israel, and Iran. Brent crude for April delivery rose 8.7 percent to $79.28 per barrel, while West Texas Intermediate gained 7.8 percent, trading at $72.16. This spike followed a coordinated U.S.-Israeli operation targeting Iranian missile facilities and command centres, resulting in significant casualties among Iranian leadership.
As the Dangote Petroleum Refinery navigates these challenges, its broader industrial vision aims to address energy deficits and stimulate growth across Africa. Aliko Dangote, President of the Dangote Group, has emphasised the importance of expanding electricity access alongside industrial and manufacturing growth.
Currently, the Dangote Petroleum Refinery & Petrochemicals operates at a production capacity of approximately 650,000 barrels of refined products daily, with plans to double output within three years as expansion efforts progress. The refinery alone has created around 30,000 jobs, with expectations to increase total employment to about 65,000 as the group expands into new sectors.
With petrol prices on the rise and global market conditions remaining uncertain, consumers and stakeholders alike will be closely monitoring the developments in Nigeria’s oil sector.
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