Petrol Prices Near N1,400 as Landing Cost Crashes, Dangote Defends Fuel Hikes
- Petrol prices near N1,400 per litre due to Dangote Refinery's price hikes, intensifying living cost pressures
- Dangote Refinery raised petrol price thrice in eight days, causing widespread criticism amid falling global crude prices
- Transportation costs vary across Nigeria, impacting pump prices as marketers face uncertainty from volatile crude market conditions
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Petrol prices are edging towards N1,400 per litre in parts of Nigeria following another increase in the Dangote Petroleum Refinery’s selling price, adding fresh pressure to motorists and households already grappling with high living costs.
The refinery raised its Premium Motor Spirit, popularly known as petrol, gantry price by N65 per litre, from N1,200 to N1,265, effective August 29.
Source: Facebook
The latest adjustment represents the third price increase by the refinery in just eight days, taking the total increase during the period to N100 per litre.
Following the latest hike, petrol is selling for about N1,310 per litre in Lagos and Ogun, while prices in northern states and other locations farther from the refinery have climbed to N1,350 or more.
In some markets, the pump price is now approaching N1,400 per litre.
Dangote explains why petrol price rose
The latest increase has attracted criticism because it came as international crude oil prices recorded a decline.
However, a senior executive of the Dangote refinery said that movements in international crude prices cannot be immediately translated into the price of petrol produced from crude that was purchased earlier, according to a report by Punch.
The executive explained that crude procurement involves several stages, including negotiating the purchase, securing a loading window, chartering a vessel, loading the crude, transporting it to Nigeria and finally discharging it into the refinery’s storage tanks.
This means crude being processed today may have been bought weeks earlier at a significantly different price.
The executive also pointed to the refinery’s existing inventory, arguing that large volumes of crude bought when prices were higher remain in storage.
According to the refinery’s position, immediately reducing petrol prices whenever global crude benchmarks fall could result in refined products made from expensive crude being sold based on cheaper replacement costs.
Three price increases in eight days
Dangote’s latest adjustment follows two earlier increases this month.
On August 21, the refinery raised its gantry price from N1,165 to N1,185 per litre. Five days later, it increased the price again to N1,200.
The August 29 adjustment subsequently pushed the price to N1,265 per litre.
Source: Original
The refinery's reported PMS gantry price increased three times between August 21 and August 29, 2026.
The three increases amount to an 8.6 per cent rise in the refinery’s gantry price within eight days.
The refinery also increased its coastal PMS price from N1,582,380 to N1,669,545 per metric tonne.
Why pump prices differ across Nigeria
The increase at the refinery does not translate into a uniform pump price nationwide.
Transportation and distribution costs play a major role, particularly for locations far from the coastal refinery.
This explains why consumers in Lagos and Ogun may pay around N1,310 per litre, while motorists in parts of northern Nigeria face prices of N1,350 or higher.
The refinery has previously indicated plans to expand its free distribution initiative across the country, a move that could help reduce some transportation-related costs.
Import parity adds to the debate
Data from the Major Energies Marketers Association of Nigeria’s August 27 Energy Bulletin showed Dangote’s petrol gantry price at N1,200 per litre.
At the time, estimated spot import-parity prices stood at N1,222.32 per litre, meaning Dangote’s price was N22.32 below the estimated import-parity level.
Two days later, however, the refinery’s new N1,265 price was N42.68 above that August 27 estimate. Whether the import-parity figure had changed by then was not immediately confirmed.
Marketers warn of growing volatility
The repeated price movements are creating uncertainty for petroleum marketers.
Independent Petroleum Marketers Association of Nigeria spokesperson Chinedu Ukadike said marketers were dealing with multiple factors, including international crude prices, exchange-rate movements and government policies.
He acknowledged that Dangote had previously reduced prices when international market conditions improved but warned that the current volatility was making business planning increasingly difficult.
Source: Getty Images
The situation could remain unsettled as geopolitical tensions continue to affect global crude markets.
For Nigerian consumers, however, the immediate consequence is clear: higher petrol prices are putting additional pressure on transportation costs, household expenses and the broader cost of living.
The latest development also comes amid renewed political debate over fuel subsidies, with former Vice President Atiku Abubakar saying he would reintroduce subsidies if elected, arguing that the measure could help ease hardship and reduce living costs.
NNPC releases new petrol prices
Legit.ng earlier reported that the Nigerian National Petroleum Company Limited (NNPCL) has raised its Premium Motor Spirit (PMS) pump price again, even as Dangote Refinery expands its free petrol delivery scheme and global crude prices continue to slide.
A market survey conducted on Tuesday, August 25, 2026, during the Eid-ul-Mawlid public holiday, found that NNPCL retail outlets in Abuja and its environs now sell petrol at N1,270 per litre, up from N1,250, a N20 increase.
Source: Legit.ng
