Dangote Refinery Raises Petrol Price Again as Middle East Tensions Drive Oil Surge
The Dangote Petroleum Refinery has increased its ex-depot price for Premium Motor Spirit (PMS) to N1,245 per litre, up from N1,175, citing the ongoing Middle East crisis and rising global crude oil costs. The change, announced in a notice to marketers, takes effect from midnight on March 21, 2026. The corresponding coastal price per metric tonne has also been adjusted upwards.
The refinery stated that the revision reflects “global market realities,” including volatile crude oil prices and higher shipping expenses, factors it described as beyond its control. Marketers with existing supply agreements backed by bank guarantees covering the price difference may still lift products at the previous rates. The cost differential for others will be debited to their trading accounts, with payment evidence required by March 23.
Despite the increase, the refinery highlighted that Nigeria’s retail petrol price remains comparatively low internationally. Data from GlobalPetrolPrices.com shows an average of $0.88 (N1,191.39) per litre in Nigeria, versus a global average of $1.32. Prices are significantly higher in the United States ($1.075), United Kingdom ($1.874), and Hong Kong ($3.967). Within West Africa, Nigeria is also more affordable than neighbours like Ghana ($1.240) and Benin ($1.218). The refinery attributed this relative stability to its role in absorbing global cost pressures and ensuring supply, noting that few countries sell petrol below $1 per litre without state intervention.
This is the fourth petrol price hike by the refinery in March, following a series of increases from around N774. The domestic price has risen approximately 35-40% since the Middle East tensions escalated, a smaller increase than in markets such as Cambodia and Vietnam.
The price revision coincides with a sharp surge in crude oil benchmarks. Brent crude reached $112 per barrel, its highest since mid-2022, driven by threats to the Strait of Hormuz and the Iran-US-Israel conflict. This is well above Nigeria’s $64.85 budget benchmark. Light sweet Nigerian grades like Bonny Light traded at a premium, reaching about $112. However, Nigeria’s own production has declined to 1.31 million barrels per day in February 2026, below its OPEC quota.
The spike underscores Nigeria’s continued vulnerability to international oil price volatility and supply chain disruptions, despite the Dangote refinery’s commissioning. The higher fuel costs are expected to translate into increased transportation fares and commodity prices nationwide. Meanwhile, several African nations, including South Africa, Ghana, and Kenya, have formally engaged the 650,000-barrel-per-day facility as regional supply concerns grow amidst the global crisis.
The situation illustrates the complex interplay between geopolitical events, global oil markets, and domestic fuel pricing in Nigeria’s partially deregulated economy.
