The Dangote Petroleum Refinery has raised its petrol gantry price to a record N1,350 per litre, despite international crude oil prices remaining below the level reached during the previous oil price surge.
The adjustment came as Brent crude traded at about $104 per barrel following a sharp rise in global oil prices linked to supply concerns arising from the conflict involving the United States and Iran.
The increase is notable because the refinery’s petrol price is now higher than it was when Brent crude previously climbed above $115 per barrel.
Findings show that Dangote Refinery’s petrol gantry price remained below N1,300 per litre during the earlier oil price spike, when Brent rose above $115 per barrel. The naira was also trading at a slightly stronger level against the dollar at the time.
The latest adjustment means the refinery is charging a higher ex-depot or gantry price at a lower crude oil price than during the previous peak.
Crude oil is the refinery’s principal feedstock, while movements in the naira-dollar exchange rate also affect the cost of crude and petroleum products.
Four price increases in 22 days
The latest adjustment marks the fourth increase in Dangote Refinery’s petrol gantry price since 21 August.
The refinery raised the price from N1,165 to N1,185 per litre on 21 August, before increasing it by another N15 to N1,200 on 26 August.
On 29 August, the price rose by N65 to N1,265 before Saturday’s N85 increase took it to N1,350.
The four adjustments have increased the price by N185, representing a 15.9 per cent rise in less than a month.
In a circular issued by the Group Commercial Operations of Dangote Petroleum Refinery and Petrochemicals, the company also announced an increase in its coastal price from N1,669,545 to N1,783,530 per metric tonne.
Contrast with June price reduction
The latest increase comes against a different international oil market backdrop from that which prevailed during previous price adjustments.
Brent crude climbed above $115 per barrel in March following the outbreak of the US-Iran conflict, while Dangote’s petrol gantry price stood at N1,275 per litre.
By June, Brent had fallen below $80 per barrel, reaching $78.96 on 16 June as expectations of a possible resolution to the conflict eased concerns over supply disruptions.
Dangote subsequently reduced its petrol gantry price to N1,175 per litre.
At the time, a refinery official said further reductions could be possible but explained that the facility was still processing crude purchased at higher prices during the earlier period of elevated oil prices.
The explanation meant that the fall in international crude prices did not immediately translate into equivalent reductions in the refinery’s product prices.
However, the refinery has now increased its petrol price as crude prices have risen again, despite Brent remaining below its previous peak.
A petroleum marketer, who spoke anonymously because of the sensitivity of the issue, described the development as a contrast in how crude price movements were reflected in petrol prices.
Marketers warn of higher pump prices
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the refinery was responding to developments in the international oil market.
He warned that petrol prices could rise to N2,000 per litre if the Federal Government failed to intervene.
Ukadike called on the government to supply crude to domestic refineries at a price different from the international market rate.
Dangote Refinery’s pricing has become an important benchmark for petroleum suppliers and marketers, with changes in its gantry price often followed by adjustments in depot and retail prices.
Following the latest increase, some filling stations began raising their pump prices, with petrol selling for between N1,380 and N1,400 per litre in some locations.
Price increase coincides with Dangote IPO
The latest petrol price increase comes as Dangote Refinery prepares to open its initial public offering (IPO) to investors on Monday, 14 September.
The refinery is offering 4.1 billion ordinary shares at N525 each, potentially raising about N2.15tn if the offer is fully subscribed.
The offer is scheduled to run until 13 October, with the shares expected to commence trading on the Nigerian Exchange in November.
The IPO is expected to rank among Africa’s largest share offerings and is targeted largely at retail investors.
Dangote has said proceeds from the offer will support its expansion programme, including plans to increase the refinery’s capacity from 700,000 barrels per day to 1.4 million barrels per day.
Refinery reports stronger financial performance
The price increase also comes after a significant improvement in the refinery’s financial performance.
Dangote Refinery recorded revenue of about N19.13tn and a profit after tax of approximately N2.50tn in the first half of 2026, compared with a loss in the corresponding period of 2025.
The improvement has coincided with higher refinery utilisation and favourable conditions in international refined-product markets.
The $20bn refinery began operations in 2024 and has since become a major supplier of refined petroleum products to Nigeria and other African markets.
The company has, however, continued to face questions over the availability of locally sourced crude.
In July, the refinery began pricing some fuel products in US dollars, with a company spokesperson attributing the decision to difficulties in securing sufficient crude under the naira-for-crude arrangement and the mismatch between purchasing crude in dollars and selling refined products in naira.
The refinery said it required between 13 and 15 crude cargoes each month, while local supplies under the arrangement were insufficient to meet its needs.
With Brent crude now trading above $100 per barrel and the refinery increasing its crude purchases, the latest price adjustment has renewed scrutiny of the relationship between crude costs, refinery pricing and petrol prices in Nigeria.
For consumers, the N1,350 gantry price represents a further increase from the N1,175 level recorded in June, when international crude traded below $80 per barrel.
