Fears of Petrol Price Hike to ₦3,000 Per Litre as Dangote Refinery Raises Depot Prices

Fears of Petrol Price Hike to ₦3,000 Per Litre as Dangote Refinery Raises Depot Prices

Fresh concerns have emerged over a possible surge in petrol prices in Nigeria to as high as ₦3,000 per litre following a new increase in depot prices by Dangote Refinery, while the Nigerian Presidency has yet to issue an official response on the development.

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The warning comes as Nigerians are already grappling with rising fuel costs after the price of Premium Motor Spirit (PMS) climbed to around ₦1,400 per litre in many filling stations, while Automotive Gas Oil (diesel) surged to about ₦1,750 per litre in some locations.

The latest increase followed an adjustment by Dangote Refinery, which on Monday raised its gantry price for petrol to ₦1,175 per litre and diesel to ₦1,620 per litre.

Following the adjustment, several filling stations across the Federal Capital Territory and surrounding areas reportedly increased pump prices to between ₦1,350 and ₦1,400 per litre. Stations operated by brands such as Ranoil and Empire Energy were among those that adjusted their prices.

Industry operators warn that the situation could worsen if urgent steps are not taken to stabilise the market.

The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis‑Harry, said petrol and diesel prices may rise significantly in the coming months.

According to him, the current “naira-for-crude” policy has helped reduce dependence on foreign exchange but does not shield local prices from global crude oil fluctuations.

“We have a Naira-for-crude deal in place. However, the policy does not impact the crude oil price on the international market. Dangote has increased the petrol gantry price thrice due to market realities,” he said, urging regulators to focus on stabilising prices rather than fixing them.

The warning has heightened fears among consumers that Nigeria could face another major fuel price shock if global oil prices remain volatile and local supply costs continue to rise.

Energy analysts say retail fuel prices in Nigeria are now largely influenced by international crude oil prices, exchange rate movements, and refinery operating costs.

Meanwhile, global oil prices have surged past $100 per barrel amid tensions linked to the conflict involving the United States, Israel, and Iran.

The international benchmark Brent Crude reportedly rose by more than 30 percent, briefly surpassing $119 per barrel before easing to around $110 after reports that the Group of Seven finance ministers may consider releasing petroleum reserves in coordination with the International Energy Agency.

The latest adjustment marks the third increase in petrol prices within a week, after earlier hikes pushed the refinery’s gantry price from ₦774 to ₦874, then to ₦995, before the current rise to ₦1,175 per litre.

Fears of Petrol Price Hike to ₦3,000 Per Litre as Dangote Refinery Raises Depot Prices