Petrol May Hit ₦1,000/Litre as Dangote Hikes Price Amid Global Oil Volatility
The price of Premium Motor Spirit (PMS), popularly known as petrol, may soon climb to between ₦980 and over ₦1,000 per litre across Nigeria following a fresh increase in the gantry price by the Dangote Petroleum Refinery.
The development comes amid renewed volatility in the global crude oil market, with Brent crude rising sharply due to escalating tensions in the Middle East. Industry stakeholders say the refinery’s latest price review reflects mounting replacement costs and shifting global fundamentals.
A senior official at the refinery confirmed that the gantry price has been adjusted from ₦774 to ₦874 per litre. According to the official, the revision became necessary following changes in global crude oil prices and the associated cost implications for refined products.
In a notice to marketers, the refinery stated: “Dear Valued Customer, we are pleased to inform you that PMS is currently available for purchase. Please be informed that the current price is ₦874 per litre. Thank you for choosing Dangote.”
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that the pump price would likely reflect the adjustment. He explained that retail prices could range between ₦980 and above ₦1,000 per litre, depending on logistics and geographic location.
“Following the increase by Dangote, the pump price will likely range between ₦980 and over ₦1,000 per litre, depending on location and logistics. This is largely the effect of the recent hike in global crude oil prices,” Ukadike said.
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The increase followed a temporary suspension of petrol loading operations at the refinery effective March 2, 2026, after crude prices surged above $80 per barrel. While PMS loading was paused, Automotive Gas Oil (diesel) supply continued uninterrupted. Several depot owners also halted petrol sales to reassess replacement costs as crude prices rallied.
Global oil markets have been shaken by rising tensions involving the United States, Israel, and Iran. Concerns over potential supply disruptions around the Strait of Hormuz — a critical global oil transit route — have heightened fears of sustained price increases. Approximately 20–21 million barrels of crude oil and petroleum products pass daily through the strait, accounting for roughly 20 percent of global oil consumption.
Investment bank JPMorgan Chase has projected that Brent crude could climb as high as $120 per barrel if disruptions in the Middle East persist. Analysts warn that if crude prices exceed $90 per barrel, Nigeria could experience further increases in both petrol and diesel prices despite growing domestic refining capacity.
Despite the price hike, the refinery’s operations mark a significant milestone in Nigeria’s energy sector. Owned by the Dangote Group, the facility is designed to produce about 650,000 barrels of refined products daily, making it one of the largest single-train refineries globally. Output is expected to expand further in the coming years.
President of the Dangote Group, Aliko Dangote, has outlined broader industrial ambitions beyond refining. In a recent interview with The New York Times, Dangote emphasised the need to industrialise Africa through strategic investments in electricity generation, steel production, and port infrastructure.
“We have to industrialise Africa,” Dangote said, stressing that reliable electricity remains critical to economic growth. He noted that Nigeria’s national grid struggles to generate below 5,000 megawatts, while his group operates over 1.5 megawatts independently.
The refinery alone reportedly employs about 30,000 workers, with expansion plans expected to raise total employment within the group to approximately 65,000. Dangote also announced plans to list refinery shares on the Nigerian stock exchange to encourage broader local participation.
Industry observers say the latest petrol price adjustment underscores Nigeria’s continued exposure to global crude dynamics, even with expanded domestic refining capacity. While Dangote’s industrial strategy aims to reduce import dependence and enhance energy security, fuel pricing remains closely tied to international oil market fluctuations.
For Nigerian consumers already grappling with high living costs, the projected ₦1,000-per-litre petrol price signals further economic strain. However, analysts argue that sustained investment in refining, power, and infrastructure may offer long-term stability — provided global oil markets stabilise in the months ahead.