Dangote Refinery Reopens Petrol Gantry After Price Shock, Marketers Pay the Price
- Dangote Refinery has resumed gantry operations, reshaping petrol supply after brief suspension due to price surge
- The refinery said that marketers must reconcile accounts as ex-depot petrol price rises by ₦100 per litre, affecting nationwide pump prices
- The incident highlights a shift towards tighter supply discipline in Nigeria's downstream petroleum market
Dangote Petroleum Refinery has reopened its gantry for the loading of Premium Motor Spirit (PMS), restoring a vital supply artery after a brief but disruptive suspension triggered by a sudden price increase.
The reopening follows intense reconciliation between the refinery and petrol marketers, many of whom were required to make additional payments to reflect the revised ex-depot price.
Source: UGC
Although short-lived, the shutdown once again underlined the outsized influence of Nigeria’s largest refinery.
A single pricing decision was enough to ripple through the downstream sector, reshaping depot economics, marketer cash flows and pump prices nationwide within hours.
Why Dangote halted gantry operations
The disruption stemmed from a sharp upward review of the refinery’s ex-depot petrol price reportedly increased by about ₦100 per litre.
The adjustment came at a sensitive moment, with dozens of trucks already queued at the gantry and several marketers having completed payment documentation at the old rate but yet to lift products.
Rather than load PMS at a price that no longer reflected market realities, the refinery halted gantry operations around midnight.
For a facility known for round-the-clock activity, the pause was unusual and immediately unsettled the downstream market.
From an industry perspective, the stoppage functioned as a financial control.
By freezing loading, the refinery created space to reconcile outstanding volumes, align payments with the new price and avoid losses that could arise from selling below the updated ex-depot rate.
In effect, the gantry closure acted as a hard reset, forcing all pending transactions to conform to the new pricing structure.
Reconciliation, top-ups and the return of trucks
After the suspension, Dangote Refinery formally asked affected marketers to reconcile their accounts. This involved topping up roughly ₦100 per litre on volumes already processed before fresh loading approvals were granted.
Sources familiar with the process said marketers were required to revalidate documents and obtain new loading slips once payments were fully aligned.
Gantry operations then resumed gradually, with priority given to buyers who completed reconciliation promptly.
By Tuesday, previously idle trucks were back on the road, lifting PMS under the revised pricing terms. The episode highlights a defining shift in Nigeria’s downstream market.
Unlike the import-driven era, where pricing gaps were often absorbed through credit extensions or regulatory buffers, local refining now operates on strict cash-flow discipline. Product moves only when the numbers balance.
What it means for petrol prices nationwide
Even with gantry operations restored, the impact of the price shock is already visible at filling stations.
Retail outlets supplied by Dangote-linked marketers have begun adjusting pump prices, with PMS now selling in the high ₦800s per litre in many locations.
In some areas, prices around ₦839 per litre are fast emerging as a new benchmark.
These prices reflect not only the higher ex-depot rate but also haulage costs, dealer margins, financing pressures and the risk premium attached to abrupt pricing changes.
For independent marketers, the incident exposes a growing vulnerability.
With Dangote Refinery now a dominant supplier, even brief operational pauses can tighten supply and strain liquidity across the market.
A tougher, refinery-led downstream era
At a broader level, the episode signals a more mature but tougher downstream environment.
As Nigeria leans more heavily on local refining, petrol prices will increasingly be shaped by refinery economics, crude costs, foreign exchange exposure and operational efficiency, rather than policy cushions or import arbitrage.
Source: Getty Images
For consumers, this reality means pump prices will depend less on government intervention and more on how resilient the supply chain, from refinery gate to filling station, proves in absorbing sudden shocks.
NNPC struggles to match Dangote Refinery price
Legit.ng earlier reported that once the leader in Nigeria’s downstream petroleum market, the Nigerian National Petroleum Company Limited now faces growing challenges in competing on fuel pricing, especially since the Dangote Refinery commenced operations.
On Monday, a litre of petrol at NNPC retail outlets in Lagos sold for N785, making it N46 more expensive than prices at MRS filling stations, a key partner of the Dangote Refinery.
In the Federal Capital Territory, petrol at NNPC stations is sold for N815 per litre, compared with N739 implemented by Dangote’s partners across the country.
Source: Legit.ng
