By Boluwatife Oshadiya | March 6, 2026
Key Points
- Dangote Refinery increases petrol ex-depot price by ₦100 per litre following surge in crude costs
- Landing cost of crude rises to between $88 and $91 per barrel from about $68
- Refinery says Middle East conflict and global supply disruptions are driving higher energy prices
Main Story
Dangote Petroleum Refinery has increased the ex-depot price of Premium Motor Spirit (PMS) by ₦100 per litre after a sharp rise in global crude oil prices pushed its crude landing cost to as high as $91 per barrel.
The refinery announced the price adjustment in a statement on Thursday, attributing the move to escalating tensions in the Middle East, which it said have disrupted refinery operations and shipping routes across global oil markets.
According to the company, benchmark Brent crude prices have climbed roughly 26 percent within a short period to above $84 per barrel, while overall crude landing costs for the refinery have risen by about 33 percent — from approximately $68 per barrel previously to between $88 and $91 per barrel.
The refinery said the latest adjustment represents about a 12 percent increase in its ex-depot petrol price but noted it has absorbed roughly 20 percent of the total cost escalation to limit the impact on domestic fuel consumers.
Nigeria’s largest refinery also highlighted structural supply constraints in crude procurement, stating that local upstream producers have not met supply requirements outlined in the Petroleum Industry Act (PIA), forcing the facility to rely partly on international crude traders.
What’s Being Said
“The conflict has driven global crude and freight prices sharply higher, with benchmark Brent prices rising by about 26 percent within a short period to above $84 per barrel,” Dangote Petroleum Refinery said in a statement.
“After adding a $3.50 per barrel freight charge, crude oil will land in our tanks between $88 and $91 per barrel. For context, crude oil was landing in the refinery tanks at about $68 per barrel when the ex-depot price was ₦774 per litre.”
The company also disclosed that although it receives around five crude cargoes monthly from the Nigerian National Petroleum Company (NNPC), priced in naira, the supply falls short of the 13 cargoes required to sustain domestic sales.
“We therefore end up procuring foreign exchange at open market rates to pay for crude cargoes purchased from local and international traders,” the refinery said.
What’s Next
- Dangote Refinery plans to begin deploying compressed natural gas-powered trucks this month to reduce logistics costs and improve nationwide fuel distribution.
- The company says increased domestic refining capacity will continue to shield Nigeria from severe petroleum supply shocks during periods of global market instability.
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