Dangote Refinery Releases Fresh Petrol Prices 24 Hours After Rate Cut, Depot Operators Join
- After price cuts, Dangote Refinery raises petrol price amidst global oil market volatility
- Crude oil prices surge due to renewed tensions in the Middle East and supply concerns
- Analysts warn that recent price increases may be temporary if global oil prices stabilise
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Barely 24 hours after announcing a reduction in the price of premium motor spirit (PMS), commonly known as petrol, Dangote Refinery has adjusted its ex-depot price upward, joining several other fuel depot operators in responding to renewed volatility in the global oil market.
The latest development comes after the refinery had cut petrol prices twice within two days, lowering its ex-depot rate from N1,275 per litre to N1,250 per litre.
Source: Getty Images
However, fresh market data now indicates a reversal of that trend as rising crude oil prices continue to influence domestic fuel pricing.
Industry observers attribute the latest increase to growing uncertainty in the international energy market, particularly concerns surrounding the Strait of Hormuz, a critical shipping route for global oil supplies.
Middle East tensions push oil Prices higher
Global oil prices surged on Monday, June 1, 2026, after reports emerged that U.S. President Donald Trump had requested revisions to a proposed peace agreement involving Iran, raising fears that the reopening of the Strait of Hormuz could be delayed.
The renewed uncertainty heightened concerns about potential supply disruptions and triggered a fresh rally in crude oil prices.
As of 12:12 p.m. (WAT), Brent crude traded at $94.01 per barrel, representing a 3.17 per cent increase, while U.S. West Texas Intermediate (WTI) crude climbed 3.66 per cent to $90.56 per barrel.
Reports indicate that the proposed framework includes a 60-day cessation of hostilities, plans to restore shipping access through the Strait of Hormuz, and a roadmap for future nuclear negotiations with Iran.
However, disagreements reportedly persist over sanctions relief, Iran's enriched uranium stockpile, and security guarantees being sought by Tehran, leaving markets uncertain about the timeline for a lasting resolution.
Dangote, other depots adjust prices
Data from PetroleumPriceNG shows that Dangote Refinery increased its petrol price by 0.46 per cent to N1,256 per litre, up from N1,250 per litre announced earlier.
The refinery's adjustment was mirrored by several major depot operators across the country.
According to the data, AIPEC raised its petrol price to N1,252 per litre, while Ardova also fixed its rate at N1,252 per litre. Bulk Strategic and Liquid Bulk both increased their prices to N1,285 per litre.
The coordinated adjustments reflect growing concerns among marketers and depot operators over the rising cost of crude oil and the need to manage pricing risks.
Analysts cite the need to hedge against losses
Energy analysts say the latest price increases are largely defensive measures aimed at protecting operators from potential losses amid sharp fluctuations in crude oil prices.
“In the petroleum industry, no condition is permanent. Prices are highly susceptible to global changes, especially now that there is tension in the Middle East,” energy policy analyst, Adeola Yusuf, told Legit.ng in a telephone interview.
He added that the recent increases may prove temporary if global oil prices stabilise and geopolitical tensions ease in the coming days.
Source: Getty Images
With crude prices once again trending upward, industry stakeholders and consumers are expected to closely monitor developments in the international market, as any sustained rally could have further implications for petrol prices across Nigeria.
Marketers release new update on petrol prices
Legit.ng earlier reported that the price of petrol and other refined products changed across depots as crude oil prices shifted in the international markets.
Data obtained from the Major Energies Marketers Association of Nigeria (MEMAN) revealed that in the downstream market, petrol gantry prices averaged N1,275 per litre from the previous price of N1,195.02/L.
However, there was a higher landing cost pressure on PMS at import parity estimates, with N1,212.75 per litre (30-day average) versus N1,362.55 and N1,361.54 per litre recorded as spot price at ASPM and NPSC jetties.
Source: Legit.ng
