Petrol Hits N1,150 as Dangote Defends Dollar Sales Policy

Petrol prices have climbed as high as N1,150 per litre at some filling stations across Nigeria after Dangote Petroleum Refinery increased its ex-gantry price by N44 per litre, although the company insists its newly introduced dollar-based sales policy is not responsible for the latest retail price increases.
Dangote said no marketer has yet purchased fuel under the new dollar settlement framework, maintaining that the higher pump prices currently being recorded are unrelated to the policy. According to a senior company official, products selling at elevated prices were procured before the new payment arrangement took effect, meaning the increases reflect existing inventories rather than supplies bought under the dollar-based system.
The Lagos-based refinery recently increased its ex-gantry petrol price from N1,076 to N1,120 per litre, prompting major marketers to review retail prices. Mobil and Lado Oil now sell Premium Motor Spirit (PMS) at N1,150 per litre, up from N1,120 and N1,130 respectively, while Ardova Plc and MRS have, for now, retained pump prices at N1,120 per litre.
The company said the decision to denominate domestic fuel sales in dollars was intended to align product sales with its crude oil procurement obligations and support the refinery’s long-term commercial sustainability, rather than trigger an immediate increase in petrol prices.
The latest increase also reflects renewed volatility in global oil markets, where tensions involving the United States and Iran around the Strait of Hormuz have pushed crude prices higher, raising replacement costs for refined petroleum products worldwide. The higher international prices have added pressure to domestic fuel costs, contributing to the latest upward adjustment across the downstream market.
Market data indicate that pricing pressures are already spreading across the sector. According to PetroleumPriceNG, several depots in Lagos have revised ex-depot prices upward, with Pinnacle quoted at N1,130 per litre, African Terminal and Sahara at N1,127, while some Dangote-linked marketers sold at about N1,125 per litre.
Industry analysts said the new pricing framework could have broader implications once marketers begin replenishing stocks under the dollar settlement arrangement.
Chief Executive Officer of PetroleumPriceNG, Jeremiah Olatide, said many marketers are still adjusting to the requirement to purchase locally refined fuel in dollars, warning that the transition could increase financing costs, delay fresh product purchases and eventually feed into higher retail prices.
Similarly, energy policy analyst Osas Igho said the full impact of the latest ex-gantry increase has yet to be reflected because many filling stations are still dispensing fuel purchased before the adjustment. He expects more retailers to review pump prices upward as existing inventories are exhausted and replacement supplies enter the market.
Dangote’s clarification is unlikely to dispel wider concerns about the downstream market. If domestic fuel sales continue to be settled in dollars, marketers will require additional foreign exchange to finance purchases, increasing operating costs and potentially adding pressure on the naira. The combined effect of higher crude prices, tighter foreign exchange conditions and the transition to dollar-denominated domestic fuel sales could redefine pricing across Nigeria’s downstream petroleum market, with significant implications for inflation, corporate operating costs and household purchasing power.