Dangote Petroleum Refinery on Friday raised its ex-depot price for Premium Motor Spirit (PMS) to N880 per litre, marking a N55 jump from the previous N825 rate. This significant adjustment threatens to push retail pump prices beyond N900 in regions distant from major distribution hubs.
The hike was confirmed via petroleumprice.ng, a real-time pricing tracker. Fuel distributors warn that the increment will cascade through the downstream sector, compounding concerns over fuel affordability and price stability.
The decision contrasts sharply with global benchmark declines—Brent crude fell 3.02% to $76.47, WTI dropped to $74.93, and Murban eased to $76.97 on Friday. Despite these dips, persistent fears of sudden supply disruptions and operational cost pressures have undercut any relief for consumers.
Dangote Group President Aliko Dangote acknowledged the refinery’s growing dependence on U.S. crude to offset local shortages. Under the Federal Government’s naira-for-crude initiative, the refinery is set to import 17.65 million barrels of crude between April and July 2025, including 3.65 million barrels already delivered over the past two months.
Exchange rate volatility has further strained pricing, as the naira’s weakness inflates import costs. Dangote informed the Technical Committee of the One-Stop Shop for crude and refined product sales that ongoing crude shortages have driven the pivot to American supplies.
Depot owners in Lagos and other major cities anticipate a domino effect, with fresh price bands to follow Dangote’s lead. The temporary suspension of sales and withholding of Pro Forma Invoices since Tuesday fueled speculation, enabling opportunistic hikes across depots.
