Dangote Refinery raises ex‑depot petrol price by N75 per litre
Lagos, Nigeria – On Wednesday, Dangote Refinery announced an increase in the ex‑depot price of petrol, lifting the rate from N1,200 to N1,275 per litre, a rise of N75 (approximately 6.25 %). The adjustment also affected coastal depots, where the price is now N1,215 per litre.
The price hike comes as international crude oil benchmarks are trading at higher levels. Brent crude futures were quoted at $114.80 per barrel, representing a 3.15 % increase from the previous session. West Texas Intermediate (WTI) rose to $103 per barrel on the same day.
Dangote Refinary, Africa’s largest single‑site refinery, began commercial operations in 2023 with a capacity of 650,000 barrels per day. The facility is designed to reduce Nigeria’s dependence on imported refined products and to stabilise domestic fuel prices. However, the recent increase underscores the impact of global crude price movements on local fuel costs, even for a vertically integrated operation.
Industry analysts note that the refinery’s pricing policy reflects the need to align downstream margins with upstream input costs. As Brent and WTI maintain upward trajectories, refiners must adjust retail and wholesale rates to preserve profitability and sustain operational expenditures, including maintenance, logistics and workforce costs.
The Nigerian government has previously intervened in the fuel market to curb inflationary pressures, but it has not indicated any immediate policy response to the latest adjustment. Consumer groups are expected to monitor the situation closely, given the significance of fuel costs for transportation, electricity generation and the broader cost of living.
Market observers suggest that the price change may have a ripple effect on other fuel distributors and retailers, potentially leading to modest increases in pump prices for end‑consumers. The extent of pass‑through will depend on the pricing strategies of downstream operators and the elasticity of demand in the domestic market.
The current Brent price of $115 per barrel and WTI at $103 per barrel place Nigeria’s fuel market in a higher‑cost environment than earlier in the year. Should crude prices continue to rise, further adjustments to petrol and diesel rates from Dangote Refinery or other domestic producers are possible.
Stakeholders are advised to keep abreast of weekly crude price movements and any regulatory announcements that could influence fuel pricing dynamics in Nigeria.
