By Dangote Refinery
Petrol ex-depot price rises to ₦880 amid economic pressures
Summary
- Retail prices now exceed ₦900/litre nationwide, sparking inflation and affordability concerns
- Refinery blames exchange rate volatility, rising costs, and crude import reliance
- PETROAN, IPMAN warn of market disruption and call for regulatory review
Lagos — The Dangote Petroleum Refinery has raised its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, to ₦880 per litre as of Friday, June 20, 2025.
The ₦55 increase from the previous price of ₦825 marks a significant upward shift in the cost of fuel for Nigerians already grappling with economic hardship.
The new pricing was confirmed by petroleumprice.ng, a real-time fuel monitoring platform, and Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), is expected to push pump prices above ₦900 per litre nationwide, with distant locations facing even higher costs due to logistics and transportation challenges.
By Saturday, June 21, major marketers such as NNPC Retail had adjusted their pump prices to ₦910 per litre, while others including MRS, Ardova, and Heyden followed closely behind.
Refinery cites operational and import-related costs
Despite a global dip in crude oil prices—Brent crude currently sits at $76.47 per barrel—Dangote Refinery attributed the hike to internal economic pressures. These include increased operational costs, exchange rate instability, and the growing need to import U.S. crude oil due to shortages in domestic supply.
Between April and July 2025, the refinery is projected to import 17.65 million barrels of crude, with 3.65 million barrels already received.
The reliance on foreign crude has undercut the cost benefits the refinery had previously offered through domestic sourcing.
Reactions and market concerns
As Nigeria’s only major domestic supplier of refined petrol, the Dangote Refinery exerts substantial influence over the downstream petroleum sector. Therefore, the latest price hike has reignited concerns about inflation, fuel affordability, and the wider economic impact on households and businesses.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the refinery’s expanding distribution network, including plans to bypass third-party depots starting in August, could lead to a “monopoly in disguise.” PETROAN expressed fears that independent marketers may be forced out of business, resulting in job losses and reduced market competition.
Meanwhile, IPMAN reiterated its earlier position that petrol should retail below ₦800 per litre, pointing to the federal government’s naira-for-crude initiative and the refinery’s integrated infrastructure.
The association urged regulatory authorities to review pricing mechanisms and safeguard consumer interests.
Distribution overhaul and market implications
The Dangote Refinery is moving to further consolidate its market position by deploying 4,000 compressed natural gas (CNG)-powered tankers for direct supply to filling stations nationwide beginning August 2025. This strategy, aimed at reducing distribution costs and improving fuel availability, has raised red flags among independent fuel traders who fear exclusion from the supply chain.
Since commencing petrol supply in 2024, the 650,000-barrel-per-day capacity refinery has adjusted prices several times, with a temporary reduction to ₦825 per litre in May 2025. However, the latest hike reflects sustained economic pressures, particularly the inadequacy of crude supply under the naira-for-crude initiative, which has fallen short of stabilising input costs.
As Nigerians brace for the ripple effects of the new fuel price, stakeholders continue to call for policy interventions to prevent further deterioration of living standards and ensure a fair and competitive energy market.
