Petroleum marketers collecting Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery have been instructed to pay an additional N100 per litre before they can load petrol—despite having already completed payments at the previous price. The unexpected increase follows a sudden upward revision of the refinery’s ex-depot rate, leaving marketers scrambling to meet the new financial demands.
The development has intensified tension in the downstream sector, with multiple tanker drivers reportedly stranded at the refinery’s gantry after loading was halted at midnight. Sources say the stoppage was necessary to reconcile outstanding volumes and payments following the abrupt price adjustment.
Marketers who processed final payment slips at N699 per litre are now being required to top up to N799 per litre before loading. The refinery also reportedly withdrew a temporary festive price support and invalidated previously issued loading authorisations, leaving marketers with no option but to comply with the new pricing.
Operational Strains Complicate Supply, Price Stability
The 650,000-barrel-per-day facility, once hailed as a game-changer for local fuel supply, has recently struggled with operational constraints that have limited its ability to meet demand while maintaining stable prices.
Industry insiders say persistent technical issues with the refinery’s Residual Fluid Catalytic Cracking (RFCC) unit have forced it to operate below full capacity. These problems could extend into the first half of 2026 if not resolved, further complicating supply and price stability in the market.
The refinery reportedly suspended petrol sales at its gantry on Monday, nullifying all active PMS deal recaps with customers, before announcing the N100 per litre price increase.
Festive Price Support Withdrawn
In a notice to customers obtained by BrandIconImage, the refinery explained that the previous pricing was a deliberate intervention introduced during the festive period, and could no longer be sustained.
“Dear Valued Customer, during the recent festive period, the refinery implemented a deliberate and temporary price support intervention to cushion Nigerians at a time of heightened household spending,” the notice stated. “With the festive period concluded, PMS prices have been modestly realigned to sustainable levels. Under the current alignment, our PMS gantry price is N799 per litre.”
The notice added that marketers would have to cover the price differential, logistics, and financing costs, or accept reduced volumes based on the new price.
New Price Triggers Immediate Retail Adjustments
The additional cost is already filtering through to retail outlets. In Abuja, pump prices surged to as high as N910 per litre just hours after the refinery revised its ex-depot price.
By midday Tuesday, many stations in the Federal Capital Territory had adjusted pump prices upward, reflecting the speed with which refinery-level changes now impact the retail market.
Market checks revealed:
- Optima Energy outlets at EFCC Junction and beside Dunamis Church selling at N910 per litre (up from N815)
- AP filling station at Airport Junction selling at N899 per litre (up from N815)
- Conoil stations along Airport Road selling at N800 per litre
- Matrix outlets raising prices to N850 from N815
- Shafa stations maintaining around N815 per litre in some locations
These variations reflect differences in supply costs, stock positions, and distance from depots.
Dangote’s Dominance Intensifies Market Sensitivity
The swift retail response highlights the growing sensitivity of pump prices to movements at Dangote’s gantry. As the refinery increasingly dominates supply in Nigeria’s deregulated downstream market, its pricing decisions now have immediate and wide-ranging effects across the sector.
Dangote Refinery, Africa’s largest single-train refinery, has significantly reduced Nigeria’s reliance on imported petrol. However, its dominant supply position means any pricing adjustment is quickly transmitted throughout the downstream value chain—affecting marketers, retailers, and consumers alike.