Dangote Refinery Increases PMS Prices as Crude Oil Costs Surge
The Dangote Refinery has announced an upward adjustment in the price of Premium Motor Spirit (PMS), believed to be influenced by the current price of crude oil (Brent Crude), which is trading at $81.40 per barrel.
The new prices, which took effect from 5:30 PM on Thursday, represent a significant increase in the gantry price of petrol, particularly impacting bulk purchases.
In a communication titled “Communication on PMS Price Review,” the refinery informed its customers of the revised pricing structure. For quantities between 2 million and 4.99 million litres, the price has increased from ₦899.50 per litre to ₦955. Bulk purchases of 5 million litres and above will now cost ₦950 per litre, up from the previous ₦895.
Recall that in December 2024, in what was said to be part of an effort to help ease financial burdens on Nigerians, the mega refinery reduced petrol price by ₦70.5 naira from ₦970 to ₦899.50 per litre.
The refinery emphasized that all stock balances not yet lifted by the specified time would be repriced at the new rates. Customers are also set to receive updated volume allocations to reflect the revised prices.
Industry Response and Market Implications
The price hike is expected to have widespread repercussions across the downstream petroleum sector. Private depots, major marketers, and independent marketers are poised to adjust their pricing structures to align with the Dangote Refinery’s rates.
Speaking on the development, Olatide Jeremiah, Chief Executive Officer of PetroleumPrice.ng, highlighted the refinery’s significant influence on market prices.
“Dangote Refinery’s influence on fuel prices has become unmatched. Private depots, major marketers, and independent marketers will align with this new price. Nigerians should expect an increase in the petrol pump price as a result,” Jeremiah said.
He added that the global price of crude oil is a major factor contributing to the rise. As of Thursday, Brent Crude oil was trading at $81.84 per barrel, the highest so far in 2025.
Government Stance on Pricing
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reiterated the role of global crude oil prices in determining petrol costs. Speaking during the inaugural petroleum industry stakeholders’ forum organized by the ministry in Abuja, Lokpobiri explained that fluctuations in international oil prices would directly impact petrol prices.
“As the international oil price goes up, the petrol price may go up. As the oil price comes down, the price may come down,” he said.
Lokpobiri also emphasized the benefits of a deregulated petroleum sector.
“The essence of deregulation is for price to find its level. Before now, you were hearing negative news about petrol subsidy, but today, there is no news about petrol subsidy because the sector is completely deregulated.
“And once there is competition, people have a choice of petrol stations to buy petrol from, and this is why you cannot see any queues, which is the real essence of deregulation.”
Consumer Outlook
With depots expected to adjust their loading prices in response to the refinery’s increase, the retail pump price of petrol is likely to rise in the coming days. This adjustment is anticipated to compound the existing economic challenges for consumers and businesses reliant on fuel.
The Dangote Refinery, the world’s largest single-train refinery, continues to play a significant role in shaping Nigeria’s petroleum market since its commissioning.
