Retail petrol prices in Nigeria may soon rise to between N980 and over N1,000 per litre depending on location, following a recent increase in the gantry price by the Dangote Petroleum Refinery.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, confirmed that the pump price adjustment reflects the recent spike in global crude oil prices. A senior refinery official stated that the new gantry price has risen from N774 to N874 per litre due to international crude market volatility and replacement costs.
The price review follows a temporary suspension of petrol loading operations at the refinery on March 2, 2026, while diesel supplies continued uninterrupted. Several depot owners also halted petrol sales to reassess costs and factor in risk premiums.
Analysts warn that escalating tensions in the Middle East, particularly involving the United States, Israel, and Iran, could further push crude prices higher. Although the Strait of Hormuz remains open, shipping activity has fallen by around 70 percent due to security risks, rising insurance costs, and operational suspensions by major shipping lines. This chokepoint is critical for global oil supply, moving nearly 20 percent of daily crude consumption worldwide.
Brent crude surged to $79.28 per barrel, while West Texas Intermediate reached $72.16, following military escalations in the region. Analysts suggest that continued hostilities could drive Brent crude to $120 per barrel, which would likely translate to higher domestic fuel prices.
Dangote Petroleum Refinery’s recent price adjustment also reflects broader strategic plans by the Dangote Group. President Aliko Dangote is investing in electricity generation, steel production, and port infrastructure as part of a vision to industrialise Africa, strengthen domestic energy security, and create jobs. The refinery currently produces about 650,000 barrels of refined products daily, with output expected to double within three years.
Dangote emphasises that reliable electricity and industrial expansion are crucial for economic growth. The group already operates over 1.5 megawatts of power, while Nigeria’s national generation struggles below 5,000 MW. Expansion across sectors is expected to raise employment from 30,000 to 65,000 workers. Plans are also underway to list refinery shares on the Nigerian Stock Exchange to broaden local participation.
Experts note that while global oil market volatility drives short-term price increases, Dangote’s investments indicate a long-term strategy to stabilise Nigeria’s fuel supply, enhance domestic refining capacity, and boost the country’s industrial base.
