No More N1,200: Petrol Prices Jump by ₦200/L as Dangote Refinery Switches to Dollar Sales
- Petrol loading prices at private Lagos depots rose by N200 per litre within a week of Dangote Refinery ending naira-based sales
- Dangote Refinery set new dollar prices on July 13, 2026, invalidating all previously issued naira invoices and deal recaps
- Loading activities at Dangote Refinery have been suspended for six consecutive days, tightening domestic supply further
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s downstream petroleum market has witnessed its steepest weekly price increase in months, with petrol loading prices at private depots surging by ₦200 per litre following Dangote Petroleum Refinery’s transition from naira-based sales to a dollar-denominated pricing model.
Checks by Petroleumprice.ng showed that petrol, which sold for an average of ₦1,075 per litre across major Lagos depots on July 13, is now loading at approximately ₦1,275 per litre.
Source: Getty Images
The sharp rise represents an 18.6 per cent increase within just seven days.
Dangote’s dollar pricing changes market dynamics
Before the latest disruption, depot prices had remained relatively stable despite moderate fluctuations in international crude oil prices.
Dangote Refinery’s naira-based sales model, backed by the Federal Government’s crude-for-naira initiative, had provided marketers with a measure of pricing certainty that helped cushion the market against volatility.
That stability ended on July 13 when the refinery formally announced its transition to United States dollar sales for petroleum products.
Under the new pricing template, Premium Motor Spirit (PMS) was fixed at $0.779 per litre, Automotive Gas Oil (AGO) at $1.087 per litre, and Aviation Turbine Kerosene (ATK) at $0.942 per litre.
Liquefied Petroleum Gas (LPG) transactions were exempted from the new arrangement.
In a notice obtained by Petroleumprice.ng, the refinery informed customers that all previously issued naira-denominated Proforma Invoices and Deal Recaps had become invalid.
“Following our email on the 9th of July, 2026, regarding the transition from Naira to United States Dollars, please note that all issued Naira Coastal and Gantry PFIs/Deal Recaps are now invalid, and no payments should be made against them,” the company stated.
Marketers battle higher replacement costs
The announcement immediately altered the pricing outlook across the downstream sector.
Instead of purchasing products at a fixed naira price, marketers are now required to calculate replacement costs using both the prevailing exchange rate and international crude oil prices.
Within days, private depots began reviewing gantry prices upward as operators sought to shield themselves from mounting foreign exchange risks.
The pressure intensified after product loading activities at Dangote Refinery slowed significantly. Industry sources say today marks the sixth consecutive day since loading was suspended, leaving marketers to compete for limited volumes available at private depots.
The tighter supply environment has accelerated price increases across Lagos, with depot owners reportedly adjusting prices almost daily in response to strong demand.
Global crude prices worsen the crisis
Nigeria’s domestic supply challenge has coincided with a sharp rise in international crude oil prices.
Renewed hostilities between the United States and Iran, alongside growing concerns over shipping through the Strait of Hormuz, have pushed Brent crude above $91 per barrel, its highest level in months.
The surge in crude prices has significantly increased the replacement cost of imported petroleum products and crude feedstock, further compounding pressure on marketers.
Fresh pump price hike feared
Industry operators warn that the current trend could trigger another round of pump price increases nationwide.
With depot acquisition costs continuing to rise and international crude prices remaining elevated, retailers may be forced to review pump prices upward unless loading resumes at Dangote Refinery and crude supply issues are resolved.
Source: UGC
Stakeholders are now closely monitoring three critical developments: the resumption of petrol loading at Dangote Refinery, the outcome of discussions on crude supply under the naira-for-crude arrangement, and the direction of global crude oil prices as geopolitical tensions continue to reshape the international energy market.
Depot operators increase petrol prices
Legit.ng earlier reported that the recent surge in depot prices for petrol have risen by approximately ₦45 per litre due to escalating global crude oil costs. This shift is expected to push fuel prices even higher for consumers already burdened by inflation.
With crude oil prices soaring, many Nigerians may soon face even more financial strain at the pump, as the Independent Petroleum Marketers Association of Nigeria warns that the current import licensing policies could further exacerbate this ongoing crisis.
As the cost of living continues to climb, the implications of these fuel price hikes could resonate far beyond just the fuel tank.
Source: Legit.ng
