Dangote Refinery Increases Petrol Prices, Few Days After Rate Cut, Depot Operators Follow Suit
- Dangote Refinery has reversed the petrol price cuts announced a few days prior by N32 per litre
- According to latest data, the refinery raised its petrol prices after slashing it to N828 per litre from N887 a few days ago
- The development has led to other depot operators to also increase their prices amid market competition
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Barely days after Nigerians celebrated a major petrol price cut to ₦828 per litre, the Dangote Petroleum Refinery reversed course, increasing its ex-depot price by ₦32.
The new rate now stands at ₦860 per litre, according to data from PetroleumPriceNG.
Source: UGC
Industry experts warn that petrol prices in Nigeria’s deregulated market remain highly volatile, driven by global crude fluctuations and exchange rate pressures.
Depots move in sync with Dangote
Following the refinery’s price adjustment, depot operators who had earlier lamented frequent price changes have also raised their rates.
Prices at depots now average ₦888 per litre, marking a near-uniform industry response to the refinery’s move.
A Legit.ng report had earlier noted that depot owners were suspending petrol imports due to the unpredictability of Dangote’s pricing, which has disrupted market stability and profitability.
Imports no longer viable, say marketers
Industry players admit the refinery’s influence is reshaping the downstream petroleum landscape.
With the Federal Government’s 15% import tariff still in place, importing petrol has become unprofitable compared to buying locally refined products.
Clement Isong, Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), said Dangote’s pricing model could effectively halt fuel imports.
“It would stop imports now, definitely, since imports are higher than Dangote’s price. That is the logical thing,” he said.
Isong explained that the refinery pegs prices based on import parity, factoring in crude oil costs, freight, and logistics.
“Dangote’s gantry price of ₦828 per litre had been stable. If the spot market rises, he’ll adjust upwards; otherwise, he risks losing money,” he added.
Fear of fresh fuel shortages
However, not everyone shares the optimism. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) cautioned that the halt in imports could trigger fuel scarcity.
PETROAN President Billy Gillis-Harry warned that local refining still covers only 30–35% of national demand, and imported petrol remains crucial for stability.
“If imports stop, product unavailability will increase. Dangote’s production alone can’t meet national demand,” he said.
Gillis-Harry also expressed concern over loading delays at Dangote’s facility, claiming some marketers have paid for supplies but are yet to receive products.
Source: Getty Images
He urged the Federal Government to review the 15% import tariff to prevent a nationwide supply crisis.
MRS, AP, Heyden, other filling stations drop petrol prices
Legit.ng earlier reported that petrol prices are falling rapidly in Lagos, Ogun, and other Nigerian cities following the latest reduction in the ex-depot rate by Dangote Refinery.
A previous report by Legit.ng revealed that the mega refinery lowered its petrol ex-depot price to ₦828 per litre, down from ₦887, sparking swift reactions across the downstream sector.
The move triggered an immediate response from petroleum depot operators, many of whom slashed their own prices to align with the refinery’s new rate.
Source: Legit.ng
