New gantry price of N1,185 per litre takes effect amid rising global oil prices and tightening Middle East supply concerns.
The Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS), commonly known as petrol, by N20 per litre, raising its gantry price from N1,165 to N1,185.
The new price is expected to take effect from midnight on August 21, 2026, according to Petroleumprice.ng.
The latest adjustment comes amid renewed pressure in the international crude oil market, with Brent crude futures climbing above $93 per barrel on Thursday as concerns over escalating tensions between the United States and Iran heightened fears of further disruptions to global oil supplies.
According to Oilprice.com, Brent, the international benchmark, rose 1.95 per cent to $93.48 per barrel, marking a three-week high. West Texas Intermediate (WTI), the US benchmark, also advanced by two per cent to $86.12 per barrel.
The increase in Dangote Refinery’s gantry price comes as petrol prices in the Lagos depot market remain above the new refinery price.
PMS is currently being sold at about N1,200 per litre at Integrated Oil and Gas, African Terminals and NIPCO, while Pinnacle Oil and Gas is selling the product at N1,190 per litre.
With the latest adjustment, Dangote Refinery’s N1,185 per litre gantry price remains N15 below the N1,200 per litre price at the three depots and N5 lower than Pinnacle’s current price.
Officials of the Dangote Group had not responded to messages from our correspondent seeking clarification on the latest price increase as of the time of filing this report.
Crude Oil Rally Enters Fifth Day
The petrol price adjustment came as international crude oil prices extended their rally for a fifth consecutive day, driven largely by growing concerns over the deteriorating relationship between Washington and Tehran.
US President Donald Trump has threatened Iran with the “most crushing economic operation ever taken against any country”, while also warning countries that support Iran of “tremendous economic consequences”.
The threats have intensified market concerns over the possibility of stricter sanctions against Iran and the potential impact on crude oil supplies from the Middle East.
Oilprice.com reported that the prospect of tougher sanctions enforcement against Iran has heightened anxiety in the global oil market, particularly over possible disruptions to supply.
“Trump also warned of tougher economic penalties for entities supporting Iranian economic activities, signalling a further escalation in US efforts to isolate Iran,” ING commodities strategists Warren Patterson and Ewa Manthey reportedly wrote in a note on Thursday.
Downstream Market Under Pressure
Despite the surge in crude futures, analysts believe the headline price of crude does not fully reflect the extent of the disruption being experienced in refined petroleum products.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said the crude market was still trading below levels recorded earlier in the conflict, despite the continuing supply constraints in the Middle East.
“Crude is available, diesel is not,” Hansen said, stressing that “the real oil market stress is downstream.”
The distinction is significant for fuel markets, as disruptions to refining capacity, transportation and supplies of refined products can create sharper price pressures even when crude oil remains available.
The squeeze has been particularly pronounced in diesel markets.
Reports indicate that the US diesel crack spread — the difference between the price of diesel and the underlying crude oil price — climbed into triple digits this week for the first time on record.
The premium reached as high as $102 per barrel on Monday before easing slightly to around $100 per barrel later in the week.
Implications for Nigerian Petrol Prices
The latest Dangote adjustment highlights the sensitivity of domestic fuel prices to movements in the international crude market.
Although the Dangote Refinery is producing petrol locally, its pricing remains influenced by international market conditions, including crude oil prices, exchange-rate movements, logistics and other operating costs.
The N1,185 per litre gantry price also leaves a relatively narrow gap between the refinery’s price and prices currently quoted by major Lagos depots.
For motorists and other petrol consumers, sustained increases in international crude prices could translate into further pressure on domestic PMS prices if the global rally persists.
The development also comes at a time when Nigerian consumers and businesses remain highly sensitive to changes in energy costs, with petrol prices affecting transportation, logistics, electricity generation and the prices of goods and services across the economy.
The direction of global crude prices in the coming weeks, particularly developments involving the US and Iran and the broader Middle East supply chain, is therefore likely to remain a key factor in determining the next movement in Nigeria’s petrol market.