Dangote Refinery Raises Petrol Ex-Depot Price To ₦880 per Litre Amid Economic Pressures.
The Dangote Petroleum Refinery, Africa’s largest oil refining facility, has increased its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, to ₦880 per litre, effective Friday, 20 June 2025. The new price, up from ₦825 per litre, is set to impact fuel costs across Nigeria, with industry sources attributing the hike to global crude oil price volatility and domestic supply challenges.
The price adjustment was confirmed through a Proforma Invoice issued to marketers, as reported by PetroleumPrice.ng and The Punch. The refinery’s reliance on imported crude, with 17.65 million barrels of US crude scheduled for delivery between April and July 2025, has been exacerbated by insufficient local crude allocations under Nigeria’s naira-for-crude policy. Despite a recent drop in Brent crude prices to $76.47 (£57.16) per barrel, operational costs and exchange rate fluctuations have driven the increase.
The new ex-depot price is likely to push retail pump prices above ₦900 per litre in many regions, particularly in remote areas. On Thursday, stations like MRS and Ardova were selling petrol at ₦865 per litre, but marketers are expected to adjust prices soon to reflect the new rate. Legit.ng reported that the price hike could strain consumers already grappling with economic challenges.
Reactions have been mixed. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) expressed concerns about affordability and potential job losses in the downstream sector, urging government intervention to prevent a monopoly. Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), argued that pump prices should range between ₦700 and ₦750 per litre, given global crude price declines, and called for consumer relief.
The Dangote Refinery, with its 650,000-barrel-per-day capacity, remains crucial to Nigeria’s energy self-sufficiency. Its stockpile of over 500 million litres of high-quality petrol has bolstered the domestic market, reducing import reliance. Previously, the refinery’s ex-depot price of ₦825 per litre in February 2025 provided some relief to marketers and consumers.
The Nigerian government has reiterated its support for the naira-for-crude policy, which was briefly suspended by the Nigerian National Petroleum Company Limited (NNPCL) in March 2025. Following discussions with Finance Minister Wale Edun, stakeholders agreed to sustain the initiative to stabilise prices and ease foreign exchange pressures.
As Nigerians prepare for higher pump prices, the Dangote Refinery has urged marketers to maintain transparent pricing and encouraged consumers to report discrepancies. The refinery’s pricing strategy will continue to influence Nigeria’s fuel market, with stakeholders watching closely to see how it balances costs and affordability in the months ahead.
