Petrol Prices Could Hit ₦1,000/Litre as Dangote Refines Strategy Amid Global Oil Volatility
The price of Premium Motor Spirit (PMS), commonly known as petrol, may soon reach between ₦980 and over ₦1,000 per litre at retail pumps across Nigeria. This follows a recent increase in the gantry price by the Dangote Petroleum Refinery, confirmed by the Independent Petroleum Marketers Association of Nigeria (IPMAN). Chinedu Ukadike, IPMAN’s National Publicity Secretary, explained that location and logistics will determine the final retail rate, largely influenced by rising global crude oil prices.
The price adjustment comes as Aliko Dangote, President of the Dangote Group, unveils broader industrial plans, including investments in electricity generation, steel production, and port infrastructure. These moves aim to industrialize Africa, strengthen domestic energy security, and reduce Nigeria’s reliance on imported petroleum products. A senior refinery official highlighted that the gantry price rose to ₦874 per litre from ₦774 due to international crude price volatility and replacement costs.
Experts link the spike in petrol prices to escalating tensions in the Middle East, particularly the U.S.-Iran-Israel conflict, which threatens crude supply through the Strait of Hormuz. Oil prices surged sharply, with Brent crude rising 8.7% to $79.28 per barrel, while West Texas Intermediate hit $72.16. Analysts warn that sustained hostilities could push prices even higher, potentially exceeding $120 per barrel, which would have direct implications for domestic petrol and diesel costs.
Petrol loading at Dangote Refinery was temporarily paused on March 2, 2026, amid the crude price surge, though diesel supply continued. Several depot owners also suspended sales to reassess replacement costs, as operators are cautious about selling below market risk premiums. Despite Nigeria’s growing refining capacity, retail fuel prices remain sensitive to global market movements, highlighting the interplay between domestic production and international crude dynamics.
Beyond refining, Dangote’s plans aim to boost electricity generation, create jobs, and expand steel and port operations. The refinery currently produces about 650,000 barrels daily and employs approximately 30,000 workers, mostly Nigerians. Expansion is expected to double output and create a total of 65,000 jobs. By linking domestic energy supply to industrial growth, Dangote is positioning private sector investments as a stabilizing force amid global market shocks, with potential benefits for Nigeria’s economy and Africa’s industrialization goals.
source: punch