Dangote Refinery Resumes Petrol Sales at N850 per Litre After One-Week Suspension

The Dangote Petroleum Refinery has resumed sales of Premium Motor Spirit (PMS), popularly known as petrol, following a one-week suspension. However, the facility returned to the market with a revised ex-depot price of N850 per litre, up from N820, marking a 3.66 per cent (N30) increase.

The price update, tracked on the industry platform petroleumprice.ng, became effective on Thursday as loading operations recommenced at the 650,000-barrels-per-day plant located in the Lekki Free Trade Zone, Lagos.

Background to the Suspension

Last week, The PUNCH reported a sudden halt in petrol sales from the multi-billion-dollar refinery, which created uncertainty in the downstream oil market and triggered price volatility nationwide.

The pause followed an internal directive from the refinery to marketers, instructing them to stop all payments for PMS loading at the facility’s gantry. The notice, titled “Important Update on DPRP Collection Account for PMS”, stated:

“Please be advised that, effective immediately, all payments to the DPRP collection account for PMS gantry should be placed on hold. Further updates will be communicated shortly.”

This freeze in allocations left many operators unsure of when supply would resume, raising fears of a potential shortage.

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Price Hike and Market Implications

The resumption of sales came with the adjusted loading cost of N850 per litre, which industry stakeholders believe could translate into higher pump prices across the country in the coming week.

Although Dangote Refinery has not issued an official statement on the reason for the increase, industry insiders attribute it to fluctuations in global crude oil prices. The refinery reportedly imports around 50 per cent of its crude feedstock from the United States, making it vulnerable to shifts in international markets.

Despite the petrol price hike, the refinery has maintained a competitive advantage in diesel sales, offering Automotive Gas Oil (AGO) at N990 per litre for bulk buyers. This price remains lower than the N1,030 average across private depots in Lagos and other regions, where diesel currently retails between N1,010 and N1,050 per litre.

Refinery’s Role and Ongoing Challenges

Commissioned in 2023, the $20bn refinery was widely expected to stabilise Nigeria’s downstream sector and reduce reliance on imported petroleum products. It is currently expanding its capacity from 650,000 barrels per day (bpd) to 700,000 bpd.

However, the recent halt in petrol sales, coupled with a relatively modest share of the domestic supply market, suggests the path to full operational stability is still evolving.

Latest figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveal that 71.38 per cent of Nigeria’s daily petrol consumption in May and June 2025 came from imports, while only 28.62 per cent was supplied by Dangote Refinery.

This indicates that despite the presence of a major local refining facility, marketers continue to rely heavily on imported products, spending scarce foreign exchange in the process.

Current Depot Prices Across the Country

Market monitoring on petroleumprice.ng shows that despite Dangote Refinery’s 3.66 per cent price adjustment, ex-depot petrol prices have largely stabilised across major private depots:

• Lagos Depots: At Pinnacle, Aiteo, and MRS Tincan, PMS sold at N855 per litre, representing a slight drop of N5 (0.58%). Zamsom, Parker, and A&E posted prices of N859, down by between N3 (0.35%) from previous rates. Nipco Lagos, Matrix Warri, and Prudent Lagos held steady at N860 per litre.
• Port Harcourt and Warri Terminals: Some depots saw modest reductions. TSL posted N872, a drop of N10 (1.13%), while Ever sold at the same price after an N8 (0.91%) decline. Sigmund and Masters sold at N875, shedding N5 and N4 respectively.

These relatively small changes suggest many depot operators are adopting a “wait-and-see” approach before making substantial adjustments in response to Dangote’s new pricing.

Market Reactions and Outlook

The restart of loading activities at Dangote Refinery has provided short-term relief for marketers who had feared a prolonged disruption. However, concerns remain over the refinery’s pricing structure, supply consistency, and dependence on imported crude feedstock.

Industry analysts warn that unless local refineries can guarantee both affordable pricing and reliable supply, marketers will continue to blend domestic procurement with imports — a practice that keeps Nigeria exposed to global market shocks.

With petrol now loading at N850 per litre, the likelihood of pump price adjustments nationwide is high, particularly for retailers already struggling with narrow profit margins under deregulated market conditions.

For now, Dangote’s competitive diesel pricing is helping it maintain relevance in another segment of the fuel market. But for petrol, all eyes will be on how both the refinery and the wider downstream sector respond to market pressures in the weeks ahead.

If Dangote’s output increases steadily and imports decline, it could pave the way for more price stability. Until then, Nigerians may need to brace for continued volatility in the cost of petrol at the pump.