The Dangote Petroleum Refinery has raised its wholesale gantry price for petrol to N1,175 per litre, a move that will likely push retail fuel costs higher across Nigeria.
The adjustment, confirmed by industry sources on Monday, applies to marketers purchasing petrol directly from the refinery’s depot. This shift is anticipated to increase pump prices at filling stations nationwide, as distributors incorporate logistics and operational margins.
Based on current distribution costs, the new gantry price suggests retail petrol could sell for between N1,250 and N1,350 per litre in many regions, depending on location. This development places additional financial strain on households and businesses already contending with elevated transportation and production expenses.
The price revision follows ongoing volatility in Nigeria’s downstream petroleum sector, which has operated under a deregulated market since the government removed subsidies. Fluctuations in global crude oil prices are a key factor influencing domestic fuel costs.
Since commencing large-scale production, the Dangote refinery’s pricing has become a pivotal benchmark for Nigeria’s fuel market. The facility, owned by Aliko Dangote, is Africa’s largest single-train refinery and is central to the country’s strategy to end dependence on imported petroleum products.
Analysts note that as the refinery’s output grows, its influence on local fuel pricing will intensify. The current increase underscores the direct link between refinery gate prices and what consumers pay at the pump, highlighting the market’s new dynamics following deregulation.
