Dangote Speaks on New Petrol Prices as As Marketers Sell N50 Above Approved Rate
- Dangote Refinery denied that its new dollar-denominated sales framework caused the recent petrol price increases seen at MRS, Pinnacle and other filling stations
- The refinery said no marketer had completed a dollar transaction yet, noting that higher-priced petrol was purchased before the new policy took effect
- Energy expert Jeremiah Olatide warned the dollar payment system could raise operating costs and eventually push up pump prices across Nigeria
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery has pushed back against suggestions that its newly introduced dollar-based sales policy is behind a wave of petrol price increases at major filling stations across Nigeria, saying it is yet to receive a single dollar payment from any marketer.
The denial follows a near-N50 per litre jump in Premium Motor Spirit (PMS) prices at several Dangote-linked outlets, which fuelled public speculation that the refinery's shift to dollar-denominated transactions had fed directly into higher costs at the pump.
Source: Getty Images
What Dangote Says About the Price Rise
A senior official at the refinery said products currently selling at elevated prices were purchased before the new framework was introduced, meaning the cost increase reflects old inventory rather than goods procured under the dollar payment arrangement, Punch reports.
The refinery has maintained its official gantry price at $0.779 per litre, which translates to roughly N1,077 per litre at the current exchange rate.
According to the official, the policy change was designed to align sales with the refinery's crude oil procurement obligations and support the long-term viability of the facility, not to trigger an immediate spike in pump prices.
Petrol Prices at MRS, Pinnacle and Other Depots
Data from Petroleumprice.ng showed notable variation in ex-depot PMS prices across Lagos, with several marketers quoting figures well above the refinery's naira-equivalent gantry price. The breakdown of prices at major depots is as follows:
Here are the latest prices:
- Pinnacle: N1,130 per litre
- MRS: N1,095 per litre
- African Terminal: N1,127 per litre
- Sahara: N1,127 per litre
Some Dangote-linked marketers were also selling petrol at approximately N1,125 per litre, a premium of around N48 above the refinery's stated ex-depot price.
Source: Getty Images
Experts Flag Risks Ahead
Despite the refinery's assurances, energy analysts have raised concerns about the medium-term implications of settling domestic fuel purchases in foreign currency.
Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, said many marketers are unfamiliar with dollar-based payment obligations for locally sourced fuel, a situation already causing delays in fresh product purchases and adding uncertainty to the downstream market.
Olatide cautioned that if the policy remains in place, it could raise the cost of doing business for fuel traders and eventually filter through to higher pump prices at filling stations nationwide, including those operated by NNPC.
Diesel price rises by 86.40% in May 2026
Earlier, Legit.ng reported that the National Bureau of Statistics (NBS) has revealed that the average retail price of Automotive Gas Oil (AGO), commonly known as diesel, increased by 86.40% year-on-year to N3,277.47 per litre in May 2026.
According to the latest diesel price watch report released by the statistics agency, the figure rose from N1,758.26 per litre recorded in May 2025.
The report also showed that diesel prices increased by 32.44% on a month-on-month basis, rising from N2,474.69 per litre in April 2026 to N3,277.47 per litre in May.
Source: Legit.ng
