Petrol Prices Rise as Dangote Refinery Begins Maintenance on Key Gasoline Unit
- Ex-depot petrol prices have risen to about N805 per litre in some locations across the country
- Dangote refinery has begun planned maintenance on its main gasoline-producing unit
- According to reports, the refinery will briefly suspend crude processing in January 2026
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
There is a gradual increase in ex-depot prices of premium motor spirit (PMS), following a reported shutdown of operations at the Dangote Petroleum Refinery, due to planned maintenance and upgrade activities.
Source: Getty Images
The Vice President of Dangote Group, Edwin Devakumar, confirmed that the refinery has commenced a scheduled turnaround that will affect its main gasoline-producing unit, the residue fluid catalytic cracker (RFCC).
As reported by THE SUN, Devakumar said the maintenance programme would also lead to a brief suspension of crude processing in early 2026.
Maintenance at Dangote Refinery to be completed late January
Speaking to Platts, a unit of S&P Global Energy, Devakumar explained that maintenance work on the RFCC began during the week of December 6 and is expected to be completed by late January.
Contrary to earlier indications, he confirmed that the refinery’s crude distillation unit (CDU) would be temporarily shut down, although the pause would last only a few days in January.
Depot owners increase prices
Market checks indicate that the maintenance activities have already impacted petrol pricing.
Ex-depot prices at some private depots outside Lagos reportedly rose to about N805 per litre, compared to N699 per litre at the Dangote refinery.
Industry analysts say the increase could translate into a gradual rise in petrol pump prices across the country.
The Major Energies Marketers Association of Nigeria (MEMAN), in its latest Competency Centre Energy Bulletin, stated that ex-depot prices in Calabar, Warri and Port Harcourt now range between N800 and N805 per litre. In Lagos, prices were reported to be between N701 and N800 per litre.
Dangote refinery to increase output
Beyond maintenance, the turnaround is expected to expand the refinery’s crude distillation capacity from 650,000 barrels per day (bpd) to 700,000 bpd.
Once completed, the expansion would see the Dangote refinery overtake South Korea’s Onsan refinery to become the eighth-largest refining complex globally.
The RFCC maintenance follows increased international scrutiny of the unit after a year of intermittent operations.
In an interview with Platts in October, Aliko Dangote said the company was still addressing technical challenges affecting the unit, which he described as including design-related issues.
Source: Getty Images
Dangote assures Nigerians
Despite the price pressures, Dangote has assured Nigerians of further reductions in petrol pump prices.
Speaking at a press conference in Lagos in December, he said premium motor spirit (PMS) would sell for no more than N740 per litre, starting in Lagos.
Dangote disclosed that MRS Oil Nigeria, which operates over 2,000 filling stations nationwide, would be the first marketer to implement the revised price.
He also announced that the refinery had reduced its minimum product purchase requirement from two million litres to 500,000 litres.
He said the move is aimed at allowing more marketers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), to access supplies.
Dangote reiterated that Nigerians would ultimately benefit from domestic refining, noting that the refinery continues to operate round-the-clock to ensure that gantry price reductions are reflected at the retail level.
Dangote refinery producing below domestic demand — NMDPRA
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that as of November 30, the Dangote refinery supplied an average of 18 million litres of petrol per day, equivalent to about 113,000 bpd, in 2025.
This was below the planned output of 35 million litres per day and accounted for roughly 36% of Nigeria’s domestic petrol demand.
During August and September, when the RFCC was largely offline, Nigeria’s total gasoline production stood at about 110,000 bpd, according to the regulator.
While Dangote accounted for the bulk of the supply, three modular refineries (Edo, Waltersmith and Aradel) with a combined capacity of 28,000 bpd, also contributed to output.
Dangote Refinery reduces petrol price
Legit.ng earlier reported that Dangote Petroleum Refinery reduced petrol price late last year by N200.50 per litre, with the ripple effect of price reduction by other marketers.
The development marked one of the sharpest sustained price compressions in recent years across the country.
Data compiled from Petroleumprice.ng show that on December 19, 2024, Dangote Refinery sold premium motor spirit (PMS) at an opening ex-depot price of N899.50 per litre, following an earlier adjustment from N970 per litre.
Source: Legit.ng
